Phycobilins represent the key photosynthetic accessory pigment of cyanobacteria and numerous algal members of Glaucophyta, Cryptophyta and Rhodophyta. Phycobilins are generally covalently bonded to phycobiliproteins and seen organised into Phycobilisomes. In this review we briefly summarize the physico chemical properties, its synthesis and role in photosynthesis and, its organisation in phycobilisomes. Special focus is given to the use of phycobilins and phycobilin containing compounds in food industry and also in producing pharmaceutically valuable compounds. This study is primarily aimed to frame a clear outline regarding the potential benefits of phycobilin containing products as healthy natural food colorants, as fluorescent dyes and also as medicine.