In recent times, due to rapid consumption of fossil fuels and increased pollution levels, the demand for biofuels has been on raise. Currently the resources utilized for biofuel production are derived through conventional agriculture; it may pose a significant danger to food security. Switching over in the direction of third generation biofuels (from algae) is one among the best possible solutions for this problem. Moreover algae contain substantial quantity of carbohydrates, lipids, and proteins, thereby making them as a potential candidate for the manufacture of biofuels like bioethanol, biohydrogen, biodiesel, biobutanol, etc. Apart from biofuel production, algae can also be able to produce valuable products like omega-3 fatty acids, carotenoids, protein-rich supplements, etc. This chapter offers an insight into the modern practices being followed in the manufacture of biofuel like screening of potential strains, avoiding contamination risks, optimization of mass cultivation conditions, easy harvesting, and extraction methods. The key concerns of these process and opportunities on the employment of algal biomass in multiple applications like fuel, food, and environment will also be discussed.