The article presents an overview of the latest advances in investigations and application of the pullulan from microbes (Auriobasidium sps.) and its derivatives in the biomedical and pharmaceutical field and how this polysaccharide can be of use as a promising biomaterial in the coming future. So many papers were published during the last four decades indicated that pullulan the unique biomaterial which has so many applications in food, cosmetics, biomedical and pharmaceutical industries . The unique linkage a (1→4) and a (1→6) pattern of pullulan endows the polymer with distinctive physical traits, including adhesive properties and the capacity to form fibers. Due to its non-toxic, non-immunogenic, non-mutagenic and non-carcinogenic nature recently there is an attempt to explore this polysaccharide for various medical applications including targeted drug and gene delivery, tissue engineering, wound healing and also even in diagnostic applications like perfusion, receptor, and lymph node target specific imaging and vascular compartment imaging using it as quantum dots.