Human civilization will need to reduce its impacts on air and water quality and reduce its use of fossil fuels in order to advance towards a more sustainable future. Using microalgae to treat wastewater as well as simultaneously produce biofuels is one of the approaches for a sustainable future. The manufacture of biofuels from microalgae is one of the next-generation biofuel solutions that has recently received a lot of interest, as it can remove nutrients from the wastewater whilst capturing carbon dioxide from the atmosphere. The resulting biomass are employed to generate biofuels, which can run fuel cell vehicles of zero emission, power combustion engines and power plants. By cultivating microalgae in wastewater, eutrophication can be prevented, thereby enhancing the quality of the effluent. Thus, by combining wastewater treatment and biofuel production, the cost of the biofuels, as well as the environmental hazards, can be minimized, as there is a supply of free and already available nutrients and water. In this article, the steps involved to generate the various biofuels through microalgae are detailed.