Microalgae are a sustainable and economical source of biofuels and other valuable products. Algae are autotrophic organisms that can survive in aquatic or terrestrial forms. They are fast-growing microorganisms with a high potential for converting CO2 from the atmosphere into valuable products such as polysaccharides, fats, and other bioactive metabolites. Fuel derived from algae is named “third-generation biofuel,” which has several critical positives over plant-based (first) and animal waste feedstock (second). Biofuel companies are currently seeking to increase the commercial algal product and pursuing several engineering and biotechnological approaches to design an economic system for proper algal growth. However, microalgal research and production are mainly confined to aquatic forms, with specific limitations like water contamination and the high cost of dewatering feedstock during processing. Overexploitation of aquatic algae also leads to ecosystem imbalance as aquatic algae are the primary producers. Soil algae can be used as an alternative to counterbalance the usage of aquatic algae. The present chapter compiles some terrestrial algae that can be used as potential biomass to produce biofuels and various bioactive products.