Biofuels are viewed as promising alternatives to conventional fossil fuels because they have the potential to eliminate major environmental problems created by fossil fuels. Among the still developing biofuel technologies, biodiesel production from algae offers a greater prospect for large-scale practical use, as algae are capable of producing much more yield than other biofuels. While research on algae-based biofuel is still in its developing stage, extensive work on laboratory- and pilot-scale algae harvesting systems with promising prospects has been reported. This paper presented a discussion of the literature review on recent advances in algae separation, harvesting and drying for biofuel production. The review and discussion focus on destabilization of algae, algae harvesting technologies and algae drying processes. Challenges and prospects of algae harvesting are also outlined.