Pigments have inseparable components of human life, which are associated of human life, with all the articles being used today. Bacterial pigments have various application in current scenario. Pigments produced from natural sources are of world wide interest and is gaining significance. Colours are being added to the products for aesthetic purposes and to allure consumers. The pigments of colouring agents in food, clothing and cosmetics are the common practice in the industry. The major sources of the natural pigments are plants, micro organisms including bacteria and fungi. These pigments are not only used for coloring agents in the cosmetic and food industry but have also been reported to posses biological properties such as antimicrobial, antiviral, antioxidant and anticancer activities. Currently many natural pigments have been extracted from microorganisms. The use of microorganisms for pigment production has several advantages including stability of the pigments produced. Thus the microorganisms provide a readily available alternate source of naturally derived pigments.