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Lactic acid is low molecular weight organic acid which produced mainly by fermentation using lactic acid bacteria or synthetically. For many years this acid is used in many food and chemical industries with wide range of applications. Nowadays, lactic acid is also used in pharmaceutical and cosmetic industries based on its functional properties as. This alpha hydroxyl acid plays also several and major roles in many biochemical pathways. In addition, in recent years more attention was given to lactic acid based on its use for the production of polylactic acid (PLA) which nowadays finds many industrial and medical applications as safe, biocompatible, and biodegradable polymer. In this review is designed to give more focus on market growth of this important organic acid and to provide an overview on the recent applications of lactic acid in both medical and pharmaceutical industries.