Pigments produced by microorganisms are in high demand due to their safe, non-toxic, and biodegradable characteristics in both industrial and pharmaceutical fields. Using bacteria for pigment production offers several advantages, such as a short life cycle and ease of genetic modification. Numerous studies have highlighted that soil bacteria significantly contribute to the production of coloured pigments as secondary metabolites. Bacterial pigments are well-known for their antimicrobial, antioxidant, and anticancer properties, offering new therapeutic opportunities for the development of novel drugs. However, compared to fungal pigments, most bacterial pigments are still in the research and development stage. Hence, efforts to intensify bacterial pigment production are essential to make them readily available on the market at a low cost for various applications. This review article sheds light on bacterial pigments and their various applications based on the data available in the literature.