Bioenergy, a promising alternative to traditional fossil fuels, has emerged as a promising source of sustainable energy. Algae and microbial systems have the remarkable capability to convert organic matter into valuable bioenergy fuel ranging from bioethanol to biohydrogen. Algae, in particular microalgae have garnered significant interest due to the significant lipid content in their cell wall and they can also grow at diverse range of environmental conditions. Microalgae, are microscopic single celled organisms which considered the source for biofuel production due to increase growth rate. Species like Chlorella, Spirulina, and Dunaliella are known for accumulating substantial amounts of lipids and converted into biofuels. Macroalgae, or seaweeds, are rich in carbohydrates, therefore, produce bioethanol through anaerobic digestion. Cyanobacteria, also known as blue-green algae, can contribute to bioenergy production by accumulating both lipids and carbohydrates. Methanogenic archaea, such as Methanosarcina barkeri and Methanobacterium thermoautotrophicum, play a vital role in anaerobic digestion, producing methane (biogas) from various organic substrates. These bacteria optimize growth and metabolic activity to maximize biofuel yields. The selection of an appropriate algal species for bioenergy depends on factors such as growth rate, lipid or carbohydrate content, environmental tolerance, and ease of cultivation. Optimizing cultivation conditions, including nutrient supply, light intensity, temperature, and CO2 levels, is crucial for maximizing biomass and biofuel yields. Further, biohydrogen energy can be derived from microalgae through photobiological processes. Unicellular green algae produce hydrogen via direct or indirect biophotolysis, and advancements in genomics, transcriptomics, proteomics, and metabolomics have been employed to enhance biohydrogen production. Both light-dependent and light-independent mechanisms can be utilized. Algal biomass has been used as a raw material for fermentation for biohydrogen production. Balancing innovation with sustainable practices will be essential to ensure that the burgeoning field of bioenergy from algae and microbial systems contributes to a resilient future.