<p>Seaweeds, prevalent along coastlines globally, offer significant potential for bio-alcohol production and carbon dioxide sequestration due to their rapid, carbon-neutral growth in the coastal waters. This review explores the significant potential of seaweed biomass for bioethanol production and carbon sequestration, emphasizing the need for sustainable practices in seaweed farming and processing. Herein, the scope of this review is defined by focusing on the advancements in seaweed cultivation methods, their biochemical composition, and the challenges of converting seaweed biomass into biofuels. The review critically evaluates various pre-treatment and conversion techniques, such as fermentation and thermochemical processes, and their impact on bioethanol yield. Furthermore, the environmental benefits of seaweed cultivation, particularly its role in CO₂ sequestration and climate change mitigation, are discussed. The economic feasibility of large-scale seaweed-based biofuel production is also assessed, highlighting the need for innovations in cultivation technologies, biomass conversion, and efficient fermentation processes. Knowledge gaps are identified, and future research directions are suggested to optimize biofuel production from seaweed, emphasizing the importance of interdisciplinary collaboration and technological advancements.</p> Graphical Abstract <p></p>