Algae are a diverse group of photosynthetic organisms that thrive in various aquatic environments, ranging from microscopic phytoplankton to large macroscopic seaweeds. Due to their ability to produce a wide range of bioactive compounds, algae have become a valuable resource for generating coproducts. These coproducts, derived from the residual biomass left after primary extraction, offer significant potential for diverse industries, with the most notable impact in the nutraceutical and pharmaceutical sectors. Algae are rich in compounds such as antioxidants, omega-3 fatty acids, proteins, polysaccharides, and pigments, which hold immense health benefits. In the nutraceutical industry, these bioactives are used to develop functional foods and dietary supplements that promote cardiovascular health, enhance immune function, support digestive wellness, and combat oxidative stress. In the pharmaceutical sector, algae-derived bioactive compounds exhibit promising antiviral, antibacterial, anti-inflammatory, and anti-cancer properties, supporting the creation of new drug formulations and treatments. Furthermore, algae’s ability to produce these beneficial compounds in a sustainable and eco-friendly manner makes them a valuable alternative to traditional resources. This chapter explores the expanding role of algal coproducts in advancing innovations in nutraceuticals and pharmaceuticals, highlighting their contribution to human health and wellness through sustainable, bioactive solutions.