Interesting properties like renewability, biocompatibility, and biodegradability are present in favorable materials produced by living organisms called biopolymers. They have recently caused some environmental concerns as they have been considered to compete with polymeric materials that are fossil-based. Energy, medical devices, electronics, and food packaging are some of the applications of biobased plastics that are gaining increasing interest. Microbes, agricultural wastes, animals, and plants are some examples of biological sources that can produce biopolymers. Among the promising sources for producing bioplastics are microalgae and cyanobacteria, both of which contain cellulose, carbohydrates (especially starch), proteins, and polyhydroxyalkanoates (PHAs), according to some studies. The potential of microalgal PHAs, polysaccharides, and proteins for the production of bioplastics is summarized in this review. A wide range of applications, including environmental remediation, adsorption, 3D printing, and antioxidants 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.