There is a growing interest in the development and use of natural emulsifiers, which provide biodegradability as well as non-toxicity along with giving better performance compared to existing emulsifying agents used in the food industry. A large variety of sources of starting material, i.e., the microorganisms, are available to be used, hence giving a diverse range of applications. The focus of this review paper is on the production of bioemulsifiers, which are said to be “green surfactants”, from fungi, bacteria and yeasts; furthermore, an overview pertaining to the knowledge gained over the years in terms of characterization techniques is reported. The methods used for the characterization and isolation such as TLC, GC-MS, HPLC, NMR have also been studied. The end-application products such as cookies, muffins, and doughs along with the methods used for the incorporation of bioemulsifiers, microorganisms from which they are derived, properties imparted to the product with the use of a particular bioemulsifier and comparison with the existing food grade emulsifiers has been discussed in detail. The future prospects indicate that newer bioemulsifiers with anti-microbial, anti-oxidant and stabilization properties will prove to have a larger impact, and emphasis will be on improving the performance at an economically viable methodology.