Eco-friendly, biodegradable, microbially produced surfactants, known as biosurfactants, have been intensively studied for their ability as potential substitutes for their synthetic counterparts. Currently, the commercialization of biosurfactants compared to synthetic (chemical) surfactants remains an economic challenge due to high production costs and lower yields. This review details the challenges and better strategies for industrial scale-up of biosurfactant production and downstream processing techniques. An analysis of the use of low cost, renewable substrates, parameter optimization, strain improvement, bioreactor engineering is discussed. The role of various engineering factors that help in scale-up of biosurfactant production such as drag coefficient, Reynolds number, Enrichment ratio, Eӧtvӧs number have also been considered in this review article. The review article demonstrates the potential activity of integrated separation processes and applications of biosurfactants, bringing biosurfactants into mainstream commercialization.