The utilization of C1 gases (CH4, CO2, and CO) for the production of oleochemicals applied in the energy and platform chemicals through microbial engineering has emerged as a promising approach to reduce greenhouse gas emissions and decrease dependence on fossil fuel. C1 gas-utilizing microorganisms, such as methanotrophs, microalgae, and acetogens, are capable of converting C1 gases as the sole substrates for cell growth and oleochemical synthesis with different carbon-chain lengths, garnering considerable attention from both scientific community and industry field for sustainable biomanufacturing. This paper comprehensively reviews recent advancements in the development of engineered cell factories utilizing C1 gases for the production of oleochemicals, elucidating the key metabolic pathways of biosynthesis. Furthermore, this paper highlights the research progress and prospects in optimizing gene expression, metabolic pathway reconstruction, and fermentation conditions for efficient oleochemical production from C1 gases. This review provides valuable insights and guidance for the efficient utilization of C1 gases and the development of carbon cycling-based bioeconomy.