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Biosurfactants, derived from microorganisms and waste-biomass, are eco-friendly biomolecules with surfactant properties. Their biodegradability, low toxicity, and diverse applications across industries make them valuable for multifaceted applications including environmental, food, pharmaceutical, and cosmetic sectors. Biosurfactants offer a sustainable alternative to synthetic surfactants, with potential applications in environmental remediation, food processing, pharmaceuticals, and cosmetics. By integrating circular bioeconomy principles, reducing production costs, and exploring personalized applications, biosurfactants are poised to revolutionize industries, promoting sustainability and environmental health. Thus, continued innovation and interdisciplinary collaboration may further drive the development and utilization of biosurfactants, contributing to a cleaner, greener future. This review delves into the advancements in biosurfactant synthesis, their broad applications, and emerging research focusing on optimizing production processes through waste-biomass-valorisation and biotechnological innovations. The review article also addresses challenges in production cost and scalability. Future perspectives emphasize sustainable production strategies to enhance industrial viability.