Wet processing of textiles involves the intense application of widespread auxiliary chemicals mostly in the pretreatment, coloration, and finishing stages to improve the process performance. Within the range of auxiliaries, synthetic surfactants are dominantly used in water softening, wetting, washing, dispersing, dye leveling, fixing, and so many other operations. Due to the high levels of toxicity and very little biodegradability, the petroleum-based, chemically synthesized surfactants ultimately pose adverse environmental effects when discharged as effluents. A green approach to resolve the challenges could be the application of bioderived surfactants or ‘biosurfactants’. Biosurfactants are natural surface-active compounds obtained directly from the cell walls or membranes of microorganisms. The scope of the identity can be extended to certain biomolecules of plant and animal origin. Biosurfactants are highly biocompatible, less toxic, and efficiently functional even in extreme conditions of the processing environment. However, the industrial applications of biosurfactants are currently not on the full scale, mostly because of the high production costs, relatively low yield, and incompetent methodology. The current chapter addresses the key aspects of biosurfactants, including their sources, types, properties, and synthesis. The shift of focus from petroleum derivatives to bioderivatives for surfactant production has been discussed. Special emphasis was placed on exploring the potential of biosurfactants at various wet processing stages of textiles. Challenges and prospects were reported in the concluding remarks.