Lactic acid has been first introduced to us as early as 1780 as a sour component of milk. Ever since we have found its applications in food, pharmaceutical, cosmetic industries etc. Now there are emerging uses as a potential feedstock for the biodegradable polymer industry. The microorganisms being used for lactic acid fermentation, the raw materials reported, the various novel fermentation processes and its processing methods have been reviewed. The properties and applications of lactic acid, its derivatives and polymer have been discussed. The various routes to polymerization and the companies presently involved in lactic acid production have been covered