Much attention has been given to the use of microalgae to produce functional foods that have valuable bioactive chemicals, including essential amino acids, polyunsaturated fatty acids, vitamins, carotenoids, fiber, and minerals. Microalgal biomasses are increasingly being used to improve the nutritional values of foods because of their unique nutrient compositions that are beneficial to human health. Their protein content and amino acid composition are the most important components. The microalgal biomass used in the therapeutic supplement industry is dominated by bio-compounds like astaxanthin, β-carotene, polyunsaturated fatty acids like eicosapentaenoic acid and docosahexaenoic acid, and polysaccharides such as β-glucan. The popularity of microalgal supplements is growing because of the health benefits of their bioactive substances. Moreover, some microalgae, such as Dunaliella, Arthrospira (Spirulina), Chlorella, and Haematococcus, are commonly used microalgal species in functional food production. The incorporation of microalgal biomass leads not only to enhanced nutritional value but also to improved sensory quality of food products without altering their cooking or textural characteristics. Microalgae, because of their eco-friendly potential, have emerged as one of the most promising and novel sources of new functional foods. This study reviews some recent and relevant works, as well as the current challenges for future research, using different methods of chemical modification in foods with the addition of a few commercial algae to allow their use in nutritional and sensory areas. It can be concluded that the production of functional foods through the use of microalgae in foods has become an important issue.