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Large scale production of microbial oils for different applications has been a dream of many researchers for the past several decades. Certainly, a broad range of oleaginous microorganisms including yeasts, microalgae, fungi and bacteria are very capable of accumulating intracellular oils or lipids. But except that production of DHA and EPA has been a commercial reality, producing other microbial oils either for human consumption, industrial use, or for biofuel production is still cost inhibitory. This chapter will review the most recent research and development in the field of microbial oil production. In particular, it will focus on several key advances made in finding low cost and renewable materials for microbial cultivation; identifying ways to improve oil/lipid productivity either from biochemical engineering perspective or through systems biology approaches. Additionally, use of microbial oils beyond biodiesel production will be discussed together with challenges and risks associated with these applications.

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