The biosurfactant-producing bacteria obtained from oil polluted soils have attracted significant attention due to their ability to enhance the bioavailability of hydrocarbons and to facilitate the remediation of contaminated environments. Several investigations have reported the presence and applications of these microorganisms. However, an overall assessment of their ecological diversity, screening approaches and environmental performance seems limited. The present review critically discusses the diversity of biosurfactant producing bacteria isolated from oil contaminated soils and their functional roles in hydrocarbon degradation and environmental restoration. Special emphasis is placed on the comparative evaluation of commonly employed screening and characterization methods such as drop-collapse, oil-spreading, CTAB agar, emulsification index, microplate and bacterial adhesion to hydrocarbons (BATH) assays. The advantages, limitations and methodological inconsistencies with these techniques in relation to the reliable identification of highly effective bacterial isolates are discussed. This paper reviews recent developments in the application of biosurfactant-producing bacteria for the degradation of petroleum hydrocarbons with a focus on the factors that affect their performance in field conditions. This review encompasses microbial diversity, methodological challenges, and application outcomes, identifying critical knowledge gaps and future priorities for standardization of screening approaches and the development of effective bioremediation strategies. The analysis presented here offers a framework to enhance the utilization of biosurfactant-producing bacteria isolated from oil-polluted soils as sustainable agents for the restoration of the ecosystem.