Hydrogen is a promising future fuel due to its clean and high energy content properties, which make it an ideal energy carrier for reducing greenhouse gas emissions since it only produces pure water during its conversion into energy. However, one of the major challenges in using hydrogen as a source of energy is the way it is produced. Presently, hydrogen production relies on unsustainable thermochemical processes that depend on nonrenewable fossil fuels. Biohydrogen, produced from biological processes, is a potential renewable biofuel that can replace present hydrogen production technologies. The use of algal biomass as a feedstock for biohydrogen production has gained significant attention. The objective of this chapter is to provide a comprehensive overview of various methods for producing biohydrogen from algal biomass while also addressing the mechanisms and challenges associated with the process. This includes an examination of the factors that control the hydrogen production process, as well as the economic, technical, and storage-related challenges that must be considered. Unlike other well-developed biofuels such as bioethanol and biodiesel, algal hydrogen production is still in the early stages of development. It also provides an impression of the process’s financial sustainability. In addition, this chapter outlines the strategies to guarantee the sustainability of hydrogen generation and clarifies the technology’s potential reach.