Global energy shortages, as well as rising greenhouse gas emissions, have fueled the search for sustainable renewable energy sources. Recent research has identified microalgae and macroalgae biofuel as one of the major renewable energy sources for environmentally friendly growth, with the potential to replace fossil-based energy sources. The primary disadvantages associated with oil crops and lignocellulose-based biofuels were absent in marine microalgae and macroalgae biofuel. Algae-based renewable energy sources are technically and economically viable, as well as cost competitive; they require no additional land, use little water, and help to reduce atmospheric CO2. Commercial extraction of macroalgae and microalgae biofuel, however, remains impossible due to a small biomass amount and costly downstream procedures. Marine algae-based biofuel production can be made viable by installing sophisticated photobioreactors and developing low-cost biomass collection, drying, and oil recovery technologies. Commercial manufacturing is also achieved through improved genetically modified approaches to stress management, as well as technological metabolic processes to increase lipid production. Furthermore, emerging technologies such as algal-bacterial interactions for improving marine algae growth and lipid production are being investigated. This review focuses on marine algae-based biofuel production and sustainability, economic values, challenges encountered during the commercialization of marine algae biofuels, potential solutions to these challenges, and practicality.