The current review explores the potential application of algal biomass for the production of biofuels and bio-based products. The variety of processes and pathways through which bio-valorization of algal biomass can be performed are described in this review. Various lipid extraction techniques from algal biomass along with transesterification reactions for biodiesel production are briefly discussed. Processes such as the pretreatment and saccharification of algal biomass, fermentation, gasification, pyrolysis, hydrothermal liquefaction, and anaerobic digestion for the production of biohydrogen, bio-oils, biomethane, biochar (BC), and various bio-based products are reviewed in detail. The biorefinery model and its collaborative approach with various processes are highlighted for the production of eco-friendly, sustainable, and cost-effective biofuels and value-added products. The authors also discuss opportunities and challenges related to bio-valorization of algal biomass and use their own perspective regarding the processes involved in production and the feasibility to make algal research a reality for the production of biofuels and bio-based products in a sustainable manner. Display omitted •Critical analysis of pathways involves in bio-valorization of algal biomass.•Mass of 1 kg oils extracted from algal biomass can produce 1 kg biodiesel.•The yields of biochar per unit dry weight of algal biomass are in the range of 8.1–62.4%.•The foremost challenges in production of 3rd generation biofuel are its non-cost effectiveness.