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 Fossil fuel resources are depleting rapidly, most importantly the liquid fossil fuel will be exhausted by this century. In addition to that the fossil fuels are directly related to air pollution, land pollution and water degradation. In these critical circumstances, biofuel from renewable sources would be an alternative to reduce our dependency over fossil fuel and assist to maintain the global health, clean environment and economic sustainability. Production of biofuel from food stocks are generally consumed by humans or animals can be problematic and it could be the root cause of worldwide dissatisfaction. Production of biofuel from microalgae can be able to provide some distinctive advantages because of their rapid growth rate ability, greenhouse gas fixation and high lipid production ability. Here we have the review about the current and latest status of biofuel produced from algae which would be a renewable.