Nicotine and related alkaloids are toxic contaminants primarily originating as wastes from intense tobacco cultivation and processing in the Guntur district region of Andhra Pradesh. Since these alkaloids are harmful to the environment and emerged as a major global problem, there is an immense need to find safer and cheaper remedial methods. The microbes possess tremendous potential to utilize the toxic alkaloids and also yield industrially significant molecules. Pseudomonas species are the leading bacterial strains in recycling nicotine/nicotine-related alkaloids and produce useful compounds such as HSP (6-Hydroxy−3-succinoyl pyridine) and DHP (2,3-Dihydroxypyridine). These intermediates from nicotine metabolic pathways in various microbes act as precursors in the production of several therapeutics viz. anti-cancer, anti-malarial and analgesic drugs. Also, the intermediates could be employed in the development of drugs for the treatment of vascular and CNS disorders. Currently, nicotine remediation is not only restricted to biotransformation of the toxic intermediate and/or end compounds, but also to achieving some useful products. This review focuses on the microbial metabolic pathways and the genetic competence of different microbes in achieving eco-friendly nicotine utilization. Further, a terse account of the scope of the microbial potential in the development of pharmaceutically important molecules from the metabolic intermediates of nicotine is presented.