<p>The Blue Bioeconomy leverages renewable aquatic resources to capitalise on unprecedented advancements in life sciences and biotechnologies, leading breakthroughs in novel and innovative products, services, and processes. Algae, particularly microalgae, play a crucial role in the blue bioeconomy due to their versatile properties and environmental benefits. The microalgae biorefinery concept exemplifies the potential of algae in the blue bioeconomy. Various value-added products, such as biofuels, nutraceuticals, pharmaceuticals, animal feed, and foods and beverages, are produced through this. The production techniques are environmental friendly and align with the principles of the blue bioeconomy. Furthermore, microalgae also contribute to wastewater treatment and carbon capture technology, further enhancing their environmental bioremediation benefits. Despite the recognised potential of algae biomass, the global scale, efficiency, organisation, and structure of algal production remain poorly understood. Challenges in advancing and commercialising the microalgae industry are high cultivation costs, environmental issues and low public acceptance. The efforts are needed to overcome these obstacles and promote sustainable microalgae entrepreneurship. In this context, this review explores the role of microalgae biotechnology in establishing a robust and sustainable production industry within the blue economy framework. Finally, the review evaluates the challenges and future research direction of microalgae application in blue bioeconomy prospects. Overall, this review establishes the groundwork for enhancing the applicability of algae within the blue bioeconomy framework in future large-scale applications.</p>