Marine bacterial species contribute to a significant part of the oceanic population, which substantially produces biologically effectual moieties having various medical and industrial applications. The use of marine-derived bacterial pigments displays a snowballing effect in recent times, being natural, environmentally safe, and health beneficial compounds. Although isolating marine bacteria is a strenuous task, these are still a compelling subject for researchers, due to their promising avenues for numerous applications Due to their beneficial properties, including anticancer, antibacterial, antioxidant, and cytotoxic actions, marine-derived bacterial pigments were desirable in the food, pharmaceutical, textile, and cosmetic industries. Marine bio-pigments are preferred over synthetically produced colored compounds due to their biodegradability and higher environmentally friendly nature. Besides that, hazardous effects associated with the consumption of synthetic colors further substantiated the use of marine dyes as color additives in industries as well. Herein, we have reviewed the potential of different bacterial species isolated from the marine environment in diverse studies that produce bioactive pigments with potential commercial applications, in addition to the biosynthesis and physiological roles of associated pigments. The chemical structures of the bioactive compounds are also discussed.