Production of lipases in large scale through conventional methods is quiet expensive; and the activity/stability so obtained is low. This review discusses about the potential of improving the downstream processing of lipases by using reverse micellar solvent separation and also highlights the fundamental aspects of its application in the biotechnology industry. This paper aims at bringing out the features of reverse micelle extraction of lipase using surfactants, through experimental data. The activity recovery, extraction efficiency and purification factors were improved many-folds. It is one of the best technology for safe liquid-liquid extraction of enzymes.