Microalgae are single-celled microorganisms that can be found in both marine and freshwater ecosystems, particularly in benthic and littoral habitats. Microalgae are known to produce a wide range of bioactive ingredients that have applications in various industries such as pharmaceuticals, food, cosmetics, bioenergy etc. Moreover, microalgae are also being used in the treatment of municipal and industrial wastewater. Research evidences suggests that, microalgae are nutrient rich and possesses bioactives with therapeutic potential to treat acute and chronic diseases. These microorganisms can also be used as functional foods due to their high content of protein, essential amino acids, fatty acids like eicosapentaenoic acid, docosahexanoic acid and pigments such as fucoxanthin, β-carotene, lutein, astaxanthin and protein. Against this backdrop, the current chapter explores diverse bioactive compounds sourced from microalgae. We examine multifaceted applications of microalgae within the food sector, as well as their promising therapeutic potential in mitigating various diseases. To conclude, we offer a comprehensive overview of the current landscape and future possibilities surrounding the integration of bioactive compounds from microalgae into the domains of both food and pharmaceutical industries.