Fossil fuel energy resources are depleting rapidly and most importantly the liquid fossil fuel will be diminished by the middle of this century. In addition, the fossil fuel is directly related to air pollution, land and water degradation. In these circumstances, biofuel from renewable sources can be an alternative to reduce our dependency on fossil fuel and assist to maintain the healthy global environment and economic sustainability. Production of biofuel from food stock generally consumed by humans or animals can be problematic and the root cause of worldwide dissatisfaction. Biofuels production from microalgae can provide some distinctive advantages such as their rapid growth rate, greenhouse gas fixation ability and high production capacity of lipids. This paper reviews the current status of biofuel from algae as a renewable source