Improper management of waste cooking oil in food industries like restaurants, hotels, and the use of retort technology in food processing is causing a devastating impact towards the environment. This is observed through odor problems and oil film formation on the surface of water bodies that increases the biological oxygen demand. Additionally, different types of cooking oil represent different physicochemical properties. This allows for the potential use of waste cooking oil as a carbon source for fungal growth thus contributing to the production of value-added products at a low cost and eco-friendly process. Biodegradation may take place by the enzymatic reaction which involves the hydrolysis of triglycerides and metabolized through the β-oxidation pathway to acetyl-CoA. Many fungal and bacterial strains capable of degrading vegetable cooking oils have been reported with most from the genus Aspergillus, Pseudomonas, Enterobacter, and others. From the industrial perspective, with the correct technology and proper recycling technique, waste cooking oil can be readily utilized as chemical building blocks in lubricant, candle, and fuel productions.