Polymer has been used in various industries over the past few decades due to its tremendous applications. Among these, polyhydroxyalkanoates (PHA) and polylactic acid (PLA), are easily biodegradable biopolymers derived from bacteria, including recombinant Escherichia coli, Alcaligenes eutrophus, Alcaligenes latus, Azotobacter vinelandii, methylotrophs, and Pseudomonas. Conventional petroleum‐derived polymers have become potentially harmful to the environment due to their complex degradation process. The non‐biodegradability of synthetic polymers has become a global issue of concern. There is an urgent need for a substitute to tackle the increasing environmental stress. Microorganisms are small factories for producing different types of polymers during their growth cycle. The various features like biodegradability, biocompatibility, non‐toxicity, and wide substrate spectrum make the microbial polymers highly reliable. Biopolymers such as alginate, cellulose, cyanophycin, levan, poly‐hydroxyalkanoates, xanthan, poly‐lactic acid, and poly‐γ‐glutamic acid can be obtained from different microorganisms like Aureobasdium pullulans, Acetobacter xylinum, Bacillus thermoamylovorans, Cupriavidusnecator. These are extensively used in various fields like food, medicine, wastewater treatment, biofuel production, packaging, and cosmetics. Despite being advantageous in several ways, the biopolymer market still faces several hurdles. This review mainly emphasizes the different types of biopolymers, production by microorganisms and various applications of these biopolymers in different fields. The main drawback limiting the development of these polymers is the high production cost and low efficiency of the microbial strains. Genetic recombination is an efficient technique to enhance the microbial yield and to expand the biopolymers market size.This article is protected by copyright. All rights reserved.