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The role of microbes in wastewater treatment has wide perspectives. In this report an effort has been made to review the various schemes of biological wastewater treatment presently existing either as field technology or in R and D stage. Biological transformations of municipal and industrial wastewater require the activity of microbial communities with vast metabolic ranges. The microbial species forming the community can differ greatly in growth rate and yield. Complex synergistic and antagonistic relationship exists between the various microbial species present. This is especially evident when the organisms are to be selected and enriched wherein their physiological states will be adjusted in an environment alternating between, aerobic, anoxic and anaerobic conditions. Industrial wastewater, originating from chemical and pharmaceutical industries in particular are highly complex due to the presence of toxic organic compounds, solvents, inorganic chemicals, etc. The variability of the wastewater on both flow and composition (change of manufacturing product, transitory operation of the plant, washing, etc.) inherently inhibit the treatment process and is difficult to treat using conventional biological processes. Traditional continuous flow biological systems, such as activated sludge process have serious difficulties to meet the stipulated standards.