Utilizing conventional plastics is always challenging for energy sustainability and environmental protection. It is always beneficial to rely on algae-derived bioplastics to overcome those serious global issues mentioned above. Carbohydrates and hydrocarbons are the basic building units for synthesizing bioplastics or polyhydroxybutyrate. The procurement of carbohydrates and hydrocarbons can be accomplished by renewable resources, i.e., algae, for the production of bioplastics. Algae serve as a multiple base material that finds applications in bioplastics assembly. Polyhydroxybutyrate belongs to the polyester family of polymers, and it is always advantageous to extract it from bio-derived compounds since they are biodegradable in the natural environment. Carbonyl, hydroxyl, and sulfate are some of the functional groups of algae that can be manipulated to prepare the desired bioplastics. CO2 concentration, pH, light, nutrients, bacteria strain, and cultivating temperature are the major parameters on which the growth of the algae depends. Enhanced biodegradability, no freshwater consumption, no use of fertilizer and pesticides, fewer CO2 emissions, and diminished plastic pollution are some advantages of algae-derived bioplastics. The chapter presents a comprehensive discussion on algae-derived bioplastics, their synthesis mechanism, technical aspects, applications, and their current and future prospects.