Microalgae are recognized as major producers of naturally derived pigments, playing a significant role in the global food pigment market. Pigments obtained from microalgae, including chlorophylls, carotenoids, and phycobiliproteins, are valued for their distinctive colors, molecular structures, and various health benefits. This chapter offers recent insights into the technological bottlenecks of upstream and downstream processes of microalgal pigment production: upstream processes such as cultivation, nutrient, light, pH, temperature and aeration and the downstream processes such as extraction, purification and stability. Technological challenges in both the upstream and downstream processes of algal pigment production are significant, ranging from optimizing cultivation conditions and reactor design to developing efficient, cost-effective extraction and purification methods. Overcoming these challenges will require advances in bioreactor technology, harvesting methods, green extraction techniques, and process integration to make algal pigment production economically viable and environmentally sustainable at a large scale.