Naturally synthesized compounds have an evolving market demand as bioactive metabolites with numerous health benefits. In this context, microalgae-based bioactive compounds such as pigments and nutraceuticals are commercially available, and it is foreseen that the market demand would continue to grow due to the recent requirement for natural products in the food industry. In particular, the global market for microalgae-based proteins is foreseen to reach $ 0.84 billion by 2023, whereas the natural blue pigment (c-phycocyanin) is expected to reach a market value of $ 409.8 million by 2030. Being a protein-rich cyanobacterium (60–70% (w/w)) and a promising source for c-phycocyanin (47% of the total proteins), Spirulina has gained attention as a promising feedstock for the large-scale production of high-value proteins and c-phycocyanin. Even though Spirulina is commercially cultivated in many countries, the exclusive production of proteins and c-phycocyanin is still emerging. Besides, Spirulina-based biorefinery is a promising strategy to enhance the economic viability of the large-scale production of proteins and c-phycocyanin. In addition, utilization of waste resources in Spirulina-based biorefineries is a beneficial strategy in terms of increasing economic feasibility and environmental sustainability. The current review focuses on promoting a circular bioeconomy via the biorefining of Spirulina to produce protein and c-phycocyanin while analyzing the challenges and future perspectives associated with the overall process. Display omitted •Spirulina is a feedstock for the large-scale production of proteins and c-phycocyanin.•Two-stage cultivation is advantageous for large-scale cultivation of Spirulina.•Integrated biorefining increases the economic feasibility of large-scale production.•Conceptual Spirulina-based biorefinery with proteins and c-phycocyanin is proposed.