Around the world, plastic materials are being produced and consumed more as the global demand for plastic materials increases. Consequently, both marine and terrestrial life have been negatively affected by plastic waste pollution. Multiple health risks are associated with microplastics. The decomposition of plastics takes a long time, and therefore reusing plastics, burning them, chemically treating them, and burying them in landfills are not the best methods to reduce the polluting effects of these plastics. As a result of these characteristics, researchers have searched for alternatives to conventional synthetic plastics that decompose faster. It is easy to collect, process, and use microalgae to make biopolymers. Microalgae are abundant in our ecosystem. There are no known harmful effects associated with microalgae, but they have faster growth rates and are more able to cultivate in wastewater. It is possible to produce biodegradable plastic using polysaccharides in algae. In this study, we examine whether microalgae can produce biodegradable plastics and their economic viability. As a result, two newly identified environmentally friendly approaches are examined in this article: bioplastic production via microalgae, plastic biodegradation, andtheir applications.