For decades enzymes have been the most efficient biological catalysts accelerating chemical reactions that drive to yield immensely valuable end products and applications in industrial sectors. Due to their sustainable approach among many enzymes that established their prominence, lipase stands out as a highly significant enzyme in today's commercial sector owing to its versatility in applications such as the food, detergent, pharmaceutical, leather, textile, cosmetic, and paper industries. Industries prioritize microbial-origin enzymes due to their notable characteristics, including high stability, specific substrate affinity, shorter processing times, and lower energy requirements. Meeting the high demand for microbial lipase enzymes becomes challenging due to the elevated costs of enzyme production. To address this issue, the utilization of agricultural and industrial wastes is employed as a solution to lower production costs. This review focuses on the use of affordable agro-industrial residues as substrates and assesses their effectiveness in the production of microbial lipase.