In this growing world with new developing technologies, the sector of science and analysis are accenting a lot for searching out an altered way which would be considered as environmentally compatible propellant over fossil fuels. With the growth of the human population, the need for sustainable resources of energy has increased a lot since large-scale utilization of fossil fuels would lead to the absence of viable energy resources for our future progeny so for that we need renewable and clean sources of energy which are called Green Energy Resources. Biodiesel is one such form of green energy. In recent decades production of biodiesel from algal biomass has been taken up over the petrochemical-based propellant. The requirement for cropland is also less in terms of Algal cultivation and neither it requires intricate operations for its cultivation. As the worldwide energy sector is still being so the formulation of propellant from bio-based sources might be a roseate in several energy divisions which sought huge people's interest in the development of algal biomass fuel of fourth generation and analyzing prospects of biofuels. On the other hand, it is imperatively obvious to curtail the expenditure for biodiesel formulation as biofuel may be considered as a novel material which shows us a road map towards sustainable development and waste management. In this study, we highlight the most prolific studies on biofuel production from algal biomass.