The current fossil fuel reserves are not sufficient to meet the increasing demand and very soon will become exhausted. Pollution, global warming, and inflated oil prices have led the quest for renewable energy sources. Macroalgae (green, brown, and red marine seaweed) is gaining popularity as a viable and promising renewable source for biofuels production. Numerous researches have been conducted to access the potential of macroalgae for generating diverse bioproducts such as biofuels. The existence of components such as carbohydrates and lipids, and the lack or deficiency of lignin, create macroalgae an enviable feedstock for biofuels generation. This review briefly covers the potential macroalgal species promoting the production of biofuels and their cultivation methods. It also illustrates the biofuel generation pathway and its efficiency along with the recent techniques to accelerate the product yield. In addition, the current analysis focuses on a cost-effective sustainable generation of biofuel along with commercialization and scaleup.