The carotenoids, a subfamily of the isoprenoids, are among the most widespread, ancient, diverse, and rich class of all natural products and biomolecules. Microorganisms, as well as microalgae and bacteria synthesize isoprenoids from isopentenyl diphosphate (IPP) and its isomer dimethylallyl diphosphate (DMAPP). For long time, mevalonic acid was assumed to be the only natural precursor for IPP and DMAPP in the cytosolic acetate/mevalonate pathway for the biosynthesis of sterols, sesquiterpenes, triterpenoids, and carotenoids. At present, it is accepted that the relatively new route, the methylerythritol 4-phosphate (MEP), or 1-deoxy-d -xylulose-5-phosphate (DOXP) is the main pathway for the biosynthesis of plastidic isoprenoids, such as carotenoids, phytol (a side chain of chlorophylls), plastoquinone-9, isoprene, mono-, and diterpenes. Cytosolic isoprenoids (sterols) biosynthesized by MEP have been reported in eubacteria and algae (Chlorella , Chlamydomonas , Scenedesmus , and Dunaliella ). This review summarizes current knowledge of the biosynthetic pathways leading to the formation of different isoprenoids and carotenoids in bacteria and microalgae. Particular attention was given to the last early steps of the biosynthesis of the key C5 -precursor and the final steps of the biosynthesis of carotenoids including selected examples in microalgae and bacteria as well as the recent advances in genomics and metabolic engineering.