Today, lipases stand among the most important biocatalysts carrying out novel reactions in both aqueous and nonaqueous media. Lipases (EC 3.1.1.3) are a class of enzymes which catalyze the hydrolysis of long-chain triglycerides. They can act on a variety of substrates including natural oils, synthetic triglycerides, and esters of fatty acids. Lipases are produced by animals, plants, and microorganisms. At present, microbial lipases are achieving much awareness with the fast progress of enzyme technology. Lipases of microbial origin find an interesting role in biotechnology, as many of them are stable over a wide range of pH, at elevated temperature and organic solvents. They signify the most important group of biocatalysts for industrial applications. The present chapter defines various sources and industrial applications of microbial lipases especially in food processing, detergent industry, pulp and paper industry, fat and oleochemical industry, medical, and pharmaceutical. Lipases can be further exploited in many newer areas where they can serve as potential biocatalyst.