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This paper explores the potential of microbial biotransformation as a sustainable and cost-eective method for generating valuable bioproducts from terpenes, essential components of many plant-derived oils. Terpenes and terpenoids, comprising a diverse group of organic compounds,exhibit various pharmacological activities with applications in pharmaceuticals, cosmetics, and food industries. Traditional chemical extraction methods for obtaining terpenes are often expensive and environmentally unsustainable. In contrast, microbial biotransformation oers an attractive alternative by utilizing biological catalysts to produce complex terpenoid compounds, which are often more biologically active and less toxic. The paper discusses the enzymatic pathways involved in terpene biosynthesis and highlights recent advancements in microbial biotransformation techniques. Additionally, the paper discusses the potential of recombinant microorganism strains in large-scale production of bioactive terpenes, addressing challenges associated with traditional extraction methods. Overall, this paper underscores the signicance of microbial biotransformation in unlocking the therapeutic potential of terpenes and terpenoids, paving the way for thedevelopment of novel bioproducts with enhanced pharmacological activities and reduced environmental impact.