The dyestuff industry is suffering from the increases in costs of feedstock and energy for dye synthesis, and they are under increasing pressure to minimize the damage to the environment. The industries are continuously looking for cheaper, more environmentally friendly routes to existing dyes. The aim of this minireview is to discuss the most important advances in the fungal pigment area and its interest in biotechnological applications. Characteristic pigments are produced by a wide variety of fungi and the chemical composition of natural dyes are described. These pigments exhibit several biological activities besides cytotoxicity. The synthetic pigments authorized by the EC and in USA and the natural pigments available in the world market are discussed. The obstacle to the exploitation of new natural pigments sources is the food legislation, requesting costly toxicological research, manufacturing costs, and acceptance by consumers. The dislike for novel ingredients is likely to be the biggest impediment for expansion of the pigment list in the near future. If the necessary toxicological testing and the comparison with accepted pigments are made, the fungal pigments, could be acceptable by the current consumer. The potentiality of pigment production in Brazil is possible due to tremendous Amazonian region biodiversity.