Starmerella bombicola is a native yeast strain producing sophorolipids as secondary metabolites. This study explores the production, characterization, and biological activities of sophorolipids and investigates the antimicrobial, anti-biofilm, and antifungal properties of sophorolipids produced from oil refinery wastes by the yeast Starmerella bombicola. The present work demonstrated that S. bombicola MTCC 1910 when grown in oil refinery wastes namely palm fatty acid distillates and soy fatty acid distillates enhanced the rate of sophorolipids production drastically in comparison to vegetable oil, sunflower oil used as hydrophobic feedstock. Sophorolipid yields were 18.14, 37.21, and 46.1 g/L with sunflower oil, palm, and soy fatty acid distillates respectively. The crude biosurfactants were characterized using TLC, FTIR, and HPLC revealing to be acetylated sophorolipids containing both the acidic and lactonic isomeric forms. The surface lowering and emulsifying properties of the sophorolipids from refinery wastes were significantly higher than the sunflower oil-derived sophorolipids. Also, all the sophorolipids exhibited strong antibacterial properties (minimum inhibitory concentrations were between 50 and 200 µg mL) against Salmonella typhimurium, Bacillus cereus, and Staphylococcus epidermidis and were validated with morphological analysis by Scanning electron microscopy. All the sophorolipids were potent biofilm inhibitors and eradicators (minimum biofilm inhibitory and eradication concentrations were between 12.5 to 1000 µg mL) for all the tested organisms. Furthermore, antifungal activities were also found to exhibit about 16-56% inhibition at 1 mg mL for fungal mycelial growth. Therefore, this endeavour of sophorolipids production using palm and soy fatty acid distillates not only opens up a window for the bioconversion of industrial wastes into productive biosurfactants but also concludes that sophorolipids from oil refinery wastes are potent antimicrobial, anti-biofilm, and antifungal agents, highlighting their potential in biotechnological and medical applications.