Aim. This review article mainly focuses on the importance, possible risks and state of public debate on genetic engineering particularly on genetically modified organisms (GMOs). During the last decade, tremendous progress has been made in the area of genetic engineering. The technology has numerous applications in increasing productivity of agriculture (in farm animal and plant species) and biomedical industries. Creation of resistant varieties of plants, transgenic animals, increasing the protein content, biofertilization, recombinant pharmaceuticals and gene therapy are now the major application of genetic engineering. Despite the technology has opened up new opportunities for highly specific manipulation of the genetic material of organisms, it has the possible risks of genetic contamination/inbreeding, competition with natural species, ecosystem damage, risk of horizontal gene transfer, new kinds of outbreak diseases; creation of drug resistant germs; accidental escape of laboratory strains and increased disease burden if the recipient organism is a pathogenic microorganism or virus. Additionally, now, scientists are faced with ethical issue challenges related to moral and religious acceptance and animal welfare. Conclusion. Scientists need to consider the types of applications of genetic engineering which will appear on the commercial market as well as develop procedures which will minimize potential biological and ecological hazards of the technology. Even though, genetically modified foods currently available on the international market have passed safety assessments, countries vary in their regulation of genetically modified foods indicating the necessity of worldwide consensus on labelling and traceability of genetically modified foods taking into account health and environmental risks as well as religious issues.