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Abstract Background The rising demand for food production along with the concerns regarding the injudicious use of chemicals in pest management has paved way for the alternatives that could promise sustainable pest management. Bacillus thuringiensis Berliner (Bt), a soil bacterium, is a potential biopesticide with its ability to produce crystal toxins that are insecticidal in nature. Main body This article provides an insight into the diverse Bt toxins and their applications as biopesticides in pest management. The selective action of Bt towards target organism is based on its specific interactions with the insect gut receptors. The significance of Bt in the management of lepidopteran, coleopteran, hemipteran, dipteran and nematode pests of crops and livestock through its mode of action is extensively reviewed. Conclusion Besides being a promising pest control option, the challenges faced through resistance development, variation in susceptibility across species and non-target effects of Bt are also discussed. Proactive approaches and multiple modes of action can mitigate this issue.