The use of fossil fuels has increasingly become associated with negative influences like detrimental environmental effects. This has made renewables, especially biofuels like biodiesel, a highly attractive substitute for energy generation. The industrial and economic potential of biodiesel-a lipid-based fuel-has increased interest and research into oleaginous microorganisms to synthesise and produce lipids. Effective identification and characterisation of a vast array of oleaginous microorganisms have led them to be employed for their efficient lipogenesis capability and ability to use a wide range of synthetic and non-expensive substrates. However, low lipid production has limited the use of microbially sourced lipids for biodiesel production at the industrial level. Nevertheless, the improvement and engineering of robust strains of these microbes through metabolic engineering have increased their lipid production capacity, leading to commercialising the lipids. This review provides a comprehensive outlook into the identification of different oleaginous microorganisms and their unique characteristics, which makes them highly valuable. An insight into the lipid biosynthesis pathways is provided and the role that several enzymes and regulators play in the metabolism of lipid accumulation. A detailed outlook is provided on the broad range of metabolic engineering approaches with regard to enhanced lipid production in several oleaginous microorganisms.