Industrialization and urbanization have led to an increased accumulation of waste materials that are transformed into a nutrient-rich and high-quality product called vermicompost by the vermicomposting process. Vermicomposting is an ecofriendly and economically favorable biotechnological process that involves the interaction of earthworms and microorganisms. Due to the importance of this process and its great potential in dealing with the consequences of waste accumulation, this review aims to provide key insights as well as highlight knowledge gaps. It is emphasized that there is a great challenge in understanding and clarifying the mechanisms involved in the vermicomposting process. The optimization of the factors affecting the possible application of vermicompost is crucial for obtaining the final product. Information on the composition of bacterial communities, amount of vermicompost, effect on heavy metal content, plant pathogens, diseases and organic waste selection is here recognized as currently the most important issues to be addressed. By answering these knowledge gaps, it is possible to enable wider utilization of vermicompost products.