Production of plastic waste has been increasing on a global scale, resulting in an elevation in plastic waste pollution. There is a critical need to develop novel methods to scale down plastic waste pollution. Recycling the plastic scraps alone is not a complete solution for the rising problem. A key component of sustainability is reducing the use of plastics made from fossil fuels. Bio-based plastics are becoming more popular as a substitute for fossil-based polymers on the market. Researchers have found that biological feedstocks can be better utilized for the production of plastic goods in comparison to a fossil-based approach. Therefore, the production of bioplastics from microalgae is aninnovative approach that should be further investigated and enhanced. The current study focuses on assessing the present status of microalgae-based bioplastic production technologies and identifying the specific areas that require optimization for better productivity. A wide range of applications, including biomedical, agricultural, and packaging industries, employ biopolymers. A circular economy approach to microalgal-based bioplastic production is considered in this review to provide insight into current knowledge and future directions.