<p>Algal biorefineries have gained attention in recent decades as a sustainable alternative for the production of biofuels, pigments, and other value-added products. However, the conventionally used organic solvents for algal biorefineries are toxic and energy-intensive. Recently, deep eutectic solvents (DES) have emerged as greener solvents to overcome the difficulties possessed by traditional solvents in the biorefineries. This review focuses on the use of DES in sustainable algal biorefineries for various applications, including algal biomass pretreatment, lipid extraction, pigment extraction, and other value-added products for the circular economy. Despite their potential, the large-scale implementation of DES faces several hurdles. Key challenges include the high viscosity of some DES, difficulties in breaking down biomass, and the limited availability of industrial-scale production technologies, which hinder their widespread adoption. Furthermore, economic feasibility remains a key concern, as DES are still in the early stages of commercial development. This review emphasizes the need for further research on the optimization of DES for specific algal strains and bioproducts, as well as detailed life cycle assessments, to quantify their environmental benefits at a larger scale. The prospects of DES-mediated algal biorefineries are promising, and advancements in the design of DES with lower viscosity and improved recyclability could further enhance their applicability in large-scale operations.</p>