Astaxanthin is an important natural pigment, a diketo carotenoid that besides being a food ingredient has importance as a nutraceutical. Astaxanthin is a fat-soluble nutrient with a molecular weight of 596.8 Da (Dalton) and a molecular formula of C 40 H 52 O 4. It is water insoluble and lipophilic. Organisms that produce astaxanthin include the basidiomycetous yeast; Phaffia rhodozyma, the green alga; Haematococcus pluvialis and the Gram-negative bacteria; Agrobacterium aurantiacum, Paracoccus marcusii, P. carotinifaciens, Paracoccus sp. strain MBIC 01143, and P. haeundaensis. Xanthophyllomyces dendrorhous and Haematococcus pluvialis, which are potential sources of astaxanthin. The antioxidant properties of astaxanthin are believed to have a key role in the medicinal, pharmaceutical, and food industries. Astaxanthin acts as a free-radical scavenger and an immunomodulator. It is a medicinal ingredient against degenerative diseases such as cancer, skin related illness, and heart disease. Presently, this carotenoid is used as a major pigmentation source and a feed supplement in aquaculture, primarily salmon, trout, crabs, shrimp, chickens, and red sea bream. The present review focuses on the pharmacological connotations of astaxanthin and specifies the natural sources and pathways of its production along with other relevant aspects.