Contamination of soil and water due to the release of light non-aqueous phase liquids (LNAPLs) is a ubiquitous problem. The problem is more severe in arid and semi-arid coastal regions where most of the petroleum production and related refinery industries are located. Biological treatment of these organic contaminated resources is receiving increasing interests and where applicable, can serve as a cost-effective remediation alternative. The success of bioremediation greatly depends on the prevailing environmental variables, and their remediation favoring customization requires a sound understanding of their integrated behavior on fate and transport of LNAPLs under site-specific conditions. The arid and semi-arid coastal sites are characterized by specific environmental extremes; primarily, varying low and high temperatures, high salinity, water table dynamics, and fluctuating soil moisture content. An understanding of the behavior of these environmental variables on biological interactions with LNAPLs would be helpful in customizing the bioremediation for restoring problematic sites in these regions. Therefore, this paper reviews the microbial degradation of LNAPLs in soil-water, considering the influences of prevailing environmental parameters of arid and semi-arid coastal regions. First, the mechanism of biodegradation of LNAPLs is discussed briefly, followed by a summary of popular kinetic models used by researchers for describing the degradation rate of these hydrocarbons. Next, the impact of soil moisture content, water table dynamics, and soil-water temperature on the fate and transport of LNAPLs are discussed, including an overview of the studies conducted so far. Finally, based on the reviewed information, a general conclusion is presented with recommendations for future research subjects on optimizing the bioremediation technique in the field under the aforesaid environmental conditions. The present review will be useful to better understand the feasibility of bioremediation technology, in general, and its applicability for remediating LNAPLs polluted lands under aforesaid environments, in particular.