With galloping energy demands and limited energy resources, it is imperative to look for alternate energy resources to fuel vehicles. This will lessen greenhouse gas (GHG) emissions. In automobile industry, electricity is the clean fuel which will increase the demand for electric vehicles. In tune with reduction of carbon footprint, different technologies are being tried out to lessen gaseous and particulate matter emission. Due to these factors, automobile manufacturers are concentrating on electric vehicles which mainly depend on batteries, fuel cells and modified gasoline engines (either standalone or hybrid). Microgrid has emerged as a new field which can meet the energy demand of sensitive loads as well as the charging demand of electric vehicles with special emphasis on good power quality, reliability and security. Conventional methods of power generation cause high environmental pollution which can be reduce using renewable energy resources. A microgrid thus can contribute to sustainable and environmental friendly alternative with integration of distributed power generation in the renewable sector. This paper discusses major aspects of electric vehicles and microgrids covering extensive survey.