Microalgae are considered sustainable resources for the production of biofuel, feed, and bioactive compounds. Among various microalgal genera, the Tetraselmis genus, containing predominantly marine microalgal species with wide tolerance to salinity and temperature, has a high potential for large-scale commercialization. Until now, Tetraselmis sp. are exploited at smaller levels for aquaculture hatcheries and bivalve production. However, its prolific growth rate leads to promising areal productivity and energy-dense biomass, so it is considered a viable source of third-generation biofuel. Also, microbial pathogens and contaminants are not generally associated with Tetraselmis sp. in outdoor conditions due to faster growth as well as dominance in the culture. Numerous studies revealed that the metabolite compositions of Tetraselmis could be altered favorably by changing the growth conditions, taking advantage of its acclimatization or adaptation ability in different conditions. Furthermore, the biorefinery approach produces multiple fractions that can be successfully upgraded into various value-added products along with biofuel. Overall, Tetraselmis sp. could be considered a potential strain for further algal biorefinery development under the circular bioeconomy framework. In this aspect, this review discusses the recent advancements in the cultivation and harvesting of Tetraselmis sp. for wider application in different sectors. Furthermore, this review highlights the key challenges associated with large-scale cultivation, biomass harvesting, and commercial applications for Tetraselmis sp.
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