The growing industrialization and urbanization has led to a continuous hype in the demand for high energy. Around 70–80% of the globe relies on fossil fuel, as a result of which, the fossil fuel reservoirs are depleting gradually. Further, the imprudent burning of fossil fuel is a cause of increase in the global warming due to release of CO2 and other concerned greenhouse gases. Thus, there is an urgent need for alternative renewable and green energy to combat the growing problem. Hydrogen is a clean source of energy that can replace conventional fuels and also tackle the problem of greenhouse effects. Hydrogen can be suitably produced biologically by involving potential microorganisms. Biologically derived hydrogen or biohydrogen is a sustainable energy source that may have several advantages over conventional energy sources. The production of biohydrogen by the use of microalgae is an outstanding idea, as microalgae can efficiently capture carbon and use the solar energy and minimum nutrients for their growth. Recent researches emphasize to decipher strategies for improving microalgal hydrogen yields and methods associated in the cultivation of the microalgae. The present chapter focuses the role of microalgae in the production of biohydrogen and focuses on various scopes of ameliorating the yield of biohydrogen production by microalgal cultivation. It shall also discuss the various challenges for wide scale commercialization of microalgae based biohydrogen production and the future research perspectives in the particular area.