Algae-derived foods have shown great promise in addressing sustainability and global nutrition. With a focus on processes that preserve nutritional content and enhance sensory attributes, this chapter offers a comprehensive overview of the processing methods employed in the production algae-based foods. Both traditional and cutting-edge techniques are examined, including high-pressure processing, microencapsulation, and ultrasound-assisted extraction. This chapter emphasizes how these techniques can enhance flavor profiles and maximize retention of bioactive compounds. Additionally, this chapter provides a thorough review of the nutritional composition of various algae species, highlights significant processing challenges, and presents successful case studies that demonstrate the economic and commercial viability of algae-based products. Refinement of these methods will enable the food industry to fully exploit algae as a scalable, sustainable, and nutritious food source.