Microbial cell factories are emerging as powerful tools in addressing pressing environmental challenges and promoting sustainable biomanufacturing. This paper highlights the key role of engineered microorganisms in mitigating pollution, converting waste and pollutants into valuable products, and reducing reliance on fossil fuels. Through advancements in metabolic engineering, gene editing technologies, and synthetic biology, microbial cell factories are being optimized to enhance their efficiency in breaking down pollutants and producing renewable chemicals, such as biofuels, bioplastics, and specialty chemicals. These processes contribute to environmental conservation, waste valorization, and the establishment of a circular economy.The study focuses on overcoming key barriers in microbial biotechnology, such as limited scalability, process inefficiency, and economic viability, by employing strategies like metabolic pathway optimization, enzyme overexpression, and tolerance enhancement. These strategies are applied to various microbial species, demonstrating how their metabolic capabilities can be fine-tuned for industrial applications. Detailed case studies illustrate successful implementations, such as the conversion of lignocellulosic biomass, CO2, and industrial waste into high-value products, underscoring the practical impact of microbial cell factories in diverse sectors, including energy, materials, and chemicals.Furthermore, this research addresses the challenges faced by microbial cell factories in industrial-scale operations, such as maintaining genetic stability and optimizing growth conditions, and offers insight into emerging technological solutions to these obstacles. By providing a comprehensive overview of recent developments and identifying future research directions, this paper offers actionable recommendations for unlocking the full potential of microbial biotechnology. These efforts aim to further integrate microbial processes into industrial systems, contributing to a more sustainable and resilient global economy, with the ultimate goal of fostering a circular bioeconomy.