Xanthan gum is a water-soluble exo-polysaccharide. It is produced industrially from carbon sources by fermentation using the gram-negative bacterium Xanthomonas campestris. There have been various attempts to produce xanthan gum by fermentation method using bacteria and yeast by using various cheap raw materials. This review explains the recent methods of production, recovery and applications of various industries such as food, agriculture, oil, paint and cosmetics. (C) 2011 Elsevier Ltd. All rights reserved.