Lactose intolerance is a widespread digestive disorder caused by the deficiency of lactase (β-galactosidase) and responsible for the catabolism of dairy products. This chapter provides a comprehensive overview of key advancements and explores significant microbial lactases as powerful therapeutic solutions due to their advantages such as high yields, cost-effective fermentation-based production, and ease of manipulation. Emphasis has been given on the factor responsible for enzyme stability through immobilization, microencapsulation, and the development of acid- and bile-resistant formulations. The chapter also explores the recent developments to improve the catalytic efficiency and functional properties of microbial lactases. Attempt has been made on the safety assessment, regulatory approval, and the future prospects of integrating the microbial lactase preparations into functional foods and pharmaceuticals, ultimately paving the way for more effective, accessible, and permanent solutions for individuals with lactose intolerance.