Due to the environmental pollution issues associated with non-biodegradable plastics, there is a growing interest in the development of bioplastics. Microalgae biomass has emerged as an excellent option for producing biodegradable materials due to its rapid growth and low nutritional requirements, which means it does not need arable land. Microalgae are a source of various bioactive compounds, such as proteins, carbohydrates, polylactic acid (PLA), and polyhydroxyalkanoates (PHAs), which can be used to form bioplastics. Bioplastics can be formed by blending biomass with conventional polymers or biopolymers, extracting biopolymers of interest, or producing PLA or PHAs through biological processes. Besides, PHAs are biodegradable polyesters, particularly promising due to their similarity to petrochemical-based plastics produced by different microalgae species under environmental and nutrient stress. Likewise, microalgae-based bioplastics can undergo conventional plastics processing techniques such as extrusion, injection molding, and compression molding. However, industrial-scale development of microalgae-based bioplastics remains relatively limited. Therefore, exploring innovative strategies such as biorefinery approaches and genetic engineering is essential to address economic viability challenges hindering the widespread adoption of microalgae-based bioplastics in the market.