Micro- and macroalgal biomass conversion into valuable products is central to biorefinery research, addressing global challenges in energy and sustainability. This review details recent advancements in algal biomass conversion, focusing on the enhancement of conversion technologies to increase commercial value. Methods such as pyrolysis and catalytic bioconversion are examined for their efficiency in producing biofuels and biochemicals. The utilization of specialized algal strains for effective bioremediation and the role of algal-derived biofertilizers and biostimulants in providing sustainable alternatives to chemical fertilizers are discussed. These alternatives significantly improve soil health and plant growth. The review also highlights advanced extraction techniques, including supercritical CO2 and enzyme-assisted extraction, expanding the application of algal derivatives beyond traditional agricultural uses. Despite the potential, challenges such as high cultivation and processing costs remain, necessitating further optimization of algae-based biofuels for commercial viability. The crucial roles of genetic engineering and synthetic biology are emphasized in enhancing algal productivity and tailoring bioproduct synthesis. The review stresses the need for continued research and technological advancements to overcome these barriers, thus promoting the broader adoption of algal biorefineries and contributing to sustainable agricultural practices and enhanced global energy security.