Alternative fuel technology of third-generation biofuels in place of conventional fossil fuels is currently being witnessed at a global level. Due to its sustainability and environmental friendliness, in recent years more importance is being given to biodiesel in CI engine applications. Recent trends show that microalgae are promoted as a bio-fuel due to their inherent advantages of abundant availability of oil sources and faster growth rate with ease of cultivation. Particular species of algae such as Chlorella, Botryococcus braunii, and Scenedesmus obliquus are conventionally favored for biodiesel production as they have a prominent amount of lipids content. This review outlines the current state of experimental investigations on the use of different algae biodiesel blends with diesel for CI engines. Amongst the different algae-based biodiesel, the dual Calophyllum Inophyllum methyl ester blend (CIME20) with DEE demonstrated the maximum brake thermal efficiency (BTE) and better brake-specific fuel consumption (BSFC) of CI engines. In terms of emissions, the CO, UBHC, and smoke levels are significantly lower for algae blends in contrast to neat diesel.