Development of modified lipids with improved nutritional and functional properties has gained mounting interest among scientists and technologists over the recent past. Properties and applications of lipids not only depend on the composition but also on the structure of triacylglycerols (TAGs). Therefore, modifications in TAGs of lipids is a way to synthesize tailored lipids to widen their applications. Adverse health effects associated with trans fats originated primarily from partial hydrogenation have led to the use of alternative technologies and interesterification has emerged as the main alternative technology. Interesterification catalyzed either by chemicals or enzymes is a process of rearrangement of fatty acids in the glycerol backbone resulting in structured lipids with modified physico-chemical and nutritional properties. Despite the high cost, enzymatic interesterification offers more advantages such as milder processing conditions, less by-products and easier product recovery compared to chemical interesterification. Currently, enzymatic interesterification is used commercially to produce a variety of modified lipids such as zero-trans margarines and shortenings, cocoa butter substitutes and cocoa butter equivalents, human milk fat substitutes, low calorie structured lipids and edible films and coatings. This review presents recent developments and current trends of enzymatic interesterification, its novel applications and limitations.