The increasing environmental issues associated with conventional plastics have led to a growing emphasis on the use of eco-friendly alternatives. It is crucial to develop a creative solution to reduce this pollution. Microalgae, possessing a distinctive capability to transform sunlight and carbon dioxide into biomass via photosynthesis, have become a promising source for the manufacturing of bioplastics. The complex biosynthetic pathways used by algae to produce bioplastics provide insights into the various biochemical processes within the cell. To guarantee a sustainable production process, consideration is given to the extraction techniques, assessing their effectiveness, scalability, and environmental impact. Due to their unique growth yield, microalgae present an appealing option for producing bioplastics when compared to conventional lignocellulosic biomass. This chapter provides an extensive review on the role of microalgae in the production of bioplastics and the various algal species used for it. Further, different extraction and characterization methods for bioplastic have been discussed, along with their applications. This chapter also provides information about the biosynthetic pathways involved in the generation of some bioplastics of significant interest, such as polyhydroxyalkanoate (PHA) and polyhydroxybutyrate (PHB). In conclusion, the challenges and opportunities associated with scaling up the bioplastic production process and the economics of bioplastic have been addressed.