Plastic pollution is a significant environmental threat, affecting humans, animals, and the entire planet. The development of renewable and biodegradable materials began in the 1970s to create carbon–neutral and sustainable products. Bioplastics are expected to replace fossil-based plastics and include both non-degradable and biodegradable compositions. Recent eco-friendly approach is to use algae for bioplastic production. Algae, particularly microalgae, can degrade plastic materials through the toxins systems or enzymes synthesized by the microalgae itself using plastic polymers as carbon sources. Bioplastics produced from lipids, protein, or carbohydrate components of algal biomass is a value-added product. These are more resistant to microwave radiation, less brittle, and more durable. One such promising microbial bio-processed polyester material that serves as a bioplastic raw material is polyhydroxybutyrate (PHB). PHB is biocompatible and non-toxic, with favorable mechanical properties and biodegradability in active biological environments. It is a high-potential replacement for petrochemical-based polymers. However, high production costs, minimal yields, production technology complexities, and downstream processing difficulties limit its growth and expansion. This chapter comprehensively discusses the production and processing factors that affect the characteristics of algal bioplastics.