Bioenergy productions from microalgae have received wide attention recently and have a high potential to replace fossil fuels. Moreover, due to the high photosynthetic efficiency, microalgae mass cultivation and scale-up are believed to efficiently reduce the impact of greenhouse gas emissions. This review article explores the potential of microalgae as a reliable and sustainable source of bioenergy feedstock. The current review article contains an in-depth discussion of the various methods of producing energy using microalgae, viz. algal fuel cell (AFC), microbial fuel cell (MFC), bioethanol and biodiesel, and various other applications. This article discussed the different aspects of AFC and MFC, such as fuel cell configurations, reaction mechanisms at electrodes, reactor design factors affecting the efficiencies, and strategies to enhance the efficiencies. Moreover, microalgae cultivation, value-added compounds (pigments, polysaccharides, unsaturated fatty acids), liquid fuel production, limitations, the global scenario of microalgae biomass-based energy, and significant advancements in this field. In a nutshell, this review serves as a valuable resource for identifying, developing, and harnessing the potential of microalgae as a promising biofuel source.