The increased demand for microbial originated Industrial enzymes especially lipases which have received least priority till last one and half decades and gained lots of importance in recent days owing to their applications in wide variety of fields such as food, dairy, pharmaceutical, detergent, textile, oleo-chemical, perfume and cosmetic industries etc., has lead to the identification of novel enzymes from new sources with unique properties. The present review mainly focuses on various currently available screening methods for identification of lipase producers.