<p>Algae is a viable and growing bioresource in the food, nutraceutical, pharma and biofuel sectors because of its high value bioactive compounds (such as carbohydrates, proteins, lipids and pigments). In India, algae are used in the edible and functional food ingredients. Complex downstream processing (DSP), high production cost and sensory attributes (odour and taste) are main challenges in algae commercialization. The focus of this review is on cutting-edge environmentally friendly and sustainable techniques for extracting bioactive chemicals from algae biomass, such as microwave, ultrasonication, enzymatic, and supercritical fluid extraction. Various physical, chemical, and biological deodorization techniques are addressed to satisfy customer preferences while reducing sensory difficulties. This review also covers as to&#xa0;how fortifying algal components can improve the nutritional profile of edible goods. Additionally, it also explored Indian algal status in food, dealing with Indian guidelines, local algae biodiversity and cultivation, policies and public- private partnership initiatives for commercialization of algae and algae derived products. To promote the algae in Indian expanding food market, this review attempts to bridge the gap between algae potential and its practical implementation in food, nutraceuticals and pharmaceutical industries.</p> Graphical abstract <p></p>