Microbial ligninolytic enzymes like laccase, manganese peroxidase, and lignin peroxidase have gained much attention in many industrial applications. Among these, manganese peroxidases are key contributors in the microbial ligninolytic system. It mainly oxidizes Mn(II) ions that remain present in wood and soils, into more reactive Mn 3+ form, stabilized by fungal chelators like oxalic acids. However, Mn 3+ acts as a diffusible redox intermediate, a low molecular weight compound, which breaks phenolic lignin and produces free radicals that have a tendency to disintegrate involuntarily. It has a great application potential and ample opportunities in diverse area, such as alcohol, pulp and paper, biofuel, agriculture, cosmetic, textile, and food industries. This review article is focused on the sources, catalytic reaction mechanisms and different biotechnological applications. However, manganese peroxidases have a potential for degradation of many xenobiotic compounds and produce polymeric products formulated them into valuable tools for bioremediation purposes. In addition, microbial MnPs can also convert lignin into biomass so that the sugar can be converted into bio-fuels. Thus, this review article is mainly focused and highlighted the current scenario and updated information on manganese peroxidase enzyme.