Microbial lipases occupy a vital position with respect to their industrial applications and they are studied extensively. Thermophilic microorganisms are potential sources of thermostable alkaline lipases, which have been isolated from various natural origins. Most lipases can act in a wide range of pH and temperature, though alkaline bacterial lipases are more common. Thermostable alkaline lipases have commercial value and find applications in various industrial and biotechnological sectors such as additives in detergents, additives in food industries, environmental bioremediations and in molecular biology. The latest trend in lipase research is the development of novel and improved lipases through molecular approaches such as directed evolution and exploring natural communities by the metagenomic approach. Therefore, thermostable alkaline lipases are the enzymes of choice for many biotechnologists, microbiologists, biochemists, environmentalists and biochemical engineers. In the present review, we discuss some novel sources along with recent advances in fermentation conditions, substrate conditions and biotechnological applications of thermostable alkaline bacterial lipases. (c) 2013 Society of Chemical Industry