Display omitted •The present fossil fuel, energy demand and need for sustainable biofuels were reviewed.•Effect of light intensity, color and photoperiod on lipid content was discussed.•Effect of different pH and CO2 levels on microalgal growth and lipid were distinguished.•Mechanisms of photo-inhibition and photo damage to algal cells have been described. This paper reviews the different cultivation conditions such as temperature, light intensity, and pH for enhancing lipid accumulation for green fuel production. The various levels of physical factors on the lipid yield and growth of algae with respect to biofuel production have been discussed in this review. Initially, the bottlenecks in microalgal biodiesel production have been highlighted and the need for optimal conditions for lipid accumulation have been analyzed. Further, the impact of the cultivation conditions such as light intensity/color, temperature, and CO2 concentration were comprehensively interpreted to understand how lipid accumulation in microalgae can be enhanced in the perspective of biofuel production. Besides, all the recent advancements and experimental works on biomass and lipid production in microalgae concerning the effect of different light intensities and color, temperature regimes, CO2 concentration and pH ranges are discussed and summarized.