The consumption of energy around the globe is increasing continuously, which is mostly fulfilled by fossil fuel which is a nonrenewable source of energy. To meet the demand and supply, researchers need to identify and promote a renewable source of energy. Among various source of renewable energy, microalgae would be considered as an emerging and reliable feedstock which would be able to replace the fossil fuel-based source. Due to its high lipid contents (≈30% of dry cell mass) and high growth rate, microalgae would be able to produce higher amount of bioenergy in comparison to various renewable energy sources. Still, the key challenges associated with algal biodiesel are recovery of lipids from algal biomass and their conversion to fatty acid methyl esters (FAME). Therefore, the current chapter enlightens the whole process of biodiesel production including selection of feedstock, harvesting of algal biomass, extraction and purification of lipids, and finally production of biodiesel and value-added products via various routes.