Currently, as far as coloration is concerned, the textile industry is dominated by synthetic colors. Synthetic dyes emerged into this world due to an accidental discovery of a dye named ‘Mauveine’ by 18-year-old chemist William Henry Perkin in 1856. However, these synthetic colors have adverse effects on the environment and humans. As a result, intense research in natural colors has been started, and a lot of developments are being taking place, shifting the entire focus of the textile processing sector towards Sustainability. Colors from natural sources can be derived from different parts of nature, like plants, animals, vegetables, fruits, and microorganisms. Microbial colors are the colored metabolites secreted by microbes under stress conditions, which can be a scintillating source of non-toxic and non-carcinogenic alternatives for human use, having a great potential to substitute synthetic colors. The present chapter discusses the evolution of such microbial colors, the latest technology involved, the production stages, the metabolic mechanism of biosynthesis, the economics involved in pigment production, its application in the textile processing sector for therapeutic and other commercial finishes, and novel strategies being undertaken by various researchers. It also touches upon the scalability of microbial colors and concludes with their future challenges and scope for further research.