Microbial biosurfactants are sustainable alternatives for synthetic counterparts, and display high biodegradability, environmental compatibility, and high selectivity. While previous reports have focussed on production yield, little attention has been paid on downstream processing of biosurfactants, a critical step that controls quality. Here we review methods for biosurfactant downstream processing with focus on glycolipids and lipopeptidesglycolipids and lipopeptides. Solvent extraction, foam fractionation, and sweep floc coagulation allow to reach a purity of 55-70%. While distillation can be implemented prematurely, methods like ultrafiltration and chromatography are used as final processing to recover 90-95% of biosurfactant with 78-95% of purity. We present the cheapest and most efficient downstream techniques for industries to achieve acceptable product quality. This paper puts forth the environmental applications of biosurfactants. We review applications in treating hydrophobic organic pollutants and heavy metals in soils and water. The removal efficiency of biosurfactants reaches 96%. Biosurfactants in the detergent industry, microbial enhanced oil recovery, and soil washing are also discussed.