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Bacterial pigments are the unique and sustainable source of bioactive colour compounds used in cosmetics, food, textiles, printing and pharmaceutical products. Here, we report the pigment-producing isolates and their biological activities that could be benefited for different industries including cosmeceuticals. In this study, a total of 19 pigment-producing bacteria were isolated and purified from collected soil and water samples. The colour production ability of purified bacteria was observed up to 5 transfers. Of the 19 isolates, two isolates lost colour production ability in subsequent transfers. Crude pigments extracted from the remaining 17 isolates showed sunscreen activity in the range of 0.4–8.34. However, only 6 of them showed significant antibacterial and antioxidant activities. In the media optimization experiment, these 6 bacteria showed optimum growth in neutral to alkaline pH, while optimum temperatures for growth were different for different bacteria. One isolate produces the promising pigment, out of all six potential pigments. It is stable up to 5 transfers, having antioxidant and antibacterial activity with Sun protective activity; the strain was identified using 16srRNA gene sequencing and obtained accession number as MK770403 (probable strain is Staphylococcus xylosus) from National Center for Biotechnology Information (NCBI) database. The results of this study suggested that these bioactive pigments can further be developed and used as antibacterial, antioxidant and sun-protective ingredients in cosmeceuticals. [ABSTRACT FROM AUTHOR]