Fossil fuels have provided the primary source of energy to humanity for centuries. However, the emerging concerns related to fossil fuel depletion, associated price rise and environmental pollution have increased the interest and demand for bioenergy through biomass. Microalgae are emerging as a potential source of renewable energy that can be converted into biofuel. Microalgae have the ability to mitigate carbon dioxide (CO2) emissions and produce oil with a higher productivity that could be potentially used as fuel in engines. However, the issues associated with the energy and costs involved in algal biofuel technologies act as a barrier in its large-scale industrial applications. This review presents a brief overview of the strategies for cultivation to increase the biomass productivity along with the related bioprocesses involved in oil extraction and thereby conversion of the extracted oil/lipids to suitable fuel for engine applications. The purpose of this work is to aid in the development of efficient and commercially viable technology for microalgae based biodiesel production. ______________________________________________________________