Lutein, a yellow xanthophyll carotenoid, is increasingly recognized for its nutraceutical benefits, particularly in protecting the retina’s macula from age-related degeneration. Microalgae are a promising source of lutein, which can be a primary product or a coproduct in biorefineries. Certain microalgae exhibit lutein levels (up to 1.7%) surpassing those of common dietary sources like kale, spinach, and egg yolk (approximately 0.7–0.9%). Predominantly associated with photosystem II’s light-harvesting complex, lutein is crucial in photosynthesis and cellular defense. However, being quantitatively minor among cellular constituents, lutein necessitates specialized processing for efficient extraction. Although ubiquitous in microalgae, it is not as easily inducible as β-carotene and astaxanthin in Dunaliella salina and Haematococcus pluvialis, respectively. Currently, microalgal lutein production predominantly occurs at the bench scale, presenting challenges in scaling up. Factors like culture medium significantly influence biomass and lutein yields in industrial production, while downstream processing requires cost-effective, food-grade solvent extraction techniques. This review delves into contemporary methods and innovative progress in microalgal lutein production, emphasizing industrial-scale processes from biomass cultivation to final product formulation. A conceptual industrial process proposed in this review shows that two 10 m³ photobioreactors could produce 108 kg dry mass for Chlorella minutissima, which can be processed into approximately 616 g of lutein extract, or over 6000 capsules of finished nutraceutical daily. Despite lutein production via microalgae being in nascent stages at large scales, existing research provides a solid foundation for well-informed scale-up endeavors.