Manglicolous yeasts are those that inhabit mangroves. Being adapted to survive extreme environmental variations, these yeasts possess traits that are desirable in terms of bioprospecting potential. Yeasts have been successfully isolated from different microhabitats within the mangrove ecosystem, including vegetation, water, sediments, and invertebrates. They have been found to be most abundant in sediments and water. Manglicolous yeasts are highly diverse unlike previously assumed. Yeasts belonging to the phyla Ascomycetes are more common in mangrove ecosystems than Basidiomycetes. Candida, Cryptococcus, Debaryomyces, Geotrichum, Kluyveromyces, Rhodotorula, Saccharomyces, and Pichia were some of the dominant yeast genera which are cosmopolitan in distribution. New species yeasts such as Vishniacozyma changhuana and V.taiwanica are also known from mangroves. A compilation of isolation and identification methods employed for manglicolous yeast culture is provided in this review. Culture-independent approaches to understanding yeast diversities have also been introduced. The bioprospecting potentials of manglicolous yeasts have been highlighted these include enzymes, xylitol, biofuel, single-cell oil, anti-cancer agents, antimicrobials, and biosurfactants. Manglicolous yeast also finds application as biocontrol agents, bio-remediators, single-cell proteins, food and feed, and immunostimulants. Our knowledge of the diversity and economical prospects of manglicolous yeasts is limited and likely to remain so as mangroves are disappearing fast. Therefore, this review is an attempt to give insight into these aspects.