Microbial oddities such as versatile pigments are gaining more attention in current research due to their widely perceived applications as natural food colorants, textiles, antimicrobial activities, and cytotoxic activities. This indicates that the future generation will depend on microbial pigments over synthetic colorants for sustainable livelihood. Although several reviews have detailed the comprehensive applications of microbial pigments extensively, knowledge on several aspects of pigmented microbes is apparently missing and not properly reviewed anywhere. Thus, this review has been made to provide overall knowledge on biodiversity, distribution, pathogenicity, and ecological and industrial applications of microbial pigments as well as their challenges and future directions for food, industrial, and biomedical applications. Meticulously, this compendious review treatise on the pigments from bacteria, fungi, yeasts, and microalgae includes reports from the 1970s to 2018. A total of 261 pigment compounds produced by about 500 different microbial species are included, and their bioactive nature is described.