Keratin is ubiquitous and belongs to the family of fibrous structural proteins found in nature. It is abundant in mammals, reptiles and birds and fishes and in mostly all parts of the body, including horns, hooves, fur, wool, quill, skin, feathers, slime and beaks. Keratinases are stimulating proteolytic enzymes which are capable to degrade the insoluble protein keratin. These enzymes are produced by diverse microorganisms, microbial keratinases have become potentially important in agro-industries due to their target for the hydrolysis of highly rigid, strongly cross-linked structural polypeptide “keratin” recalcitrant to the commonly known proteolytic enzymes trypsin, pepsin and papain. The microbial degradation of keratin wastes is considered as a potential biotechnological alternative for recycling and valorization through keratinolytic beneficial microorganisms. In context to this, the present review is focused on the microbial degradation of keratin and its ecology, mechanism of action and various applications.