Excess consumption of energy by humans is compounded by environmental pollution, the greenhouse effect and climate change impacts. Current developments in the use of algae for bioenergy production offer several advantages. Algal biomass is hence considered a new bio-material which holds the promise to fulfil the rising demand for energy. Microalgae are used in effluents treatment, bioenergy production, high value added products synthesis and CO capture. This review summarizes the potential applications of algae in bioelectrochemically mediated oxidation reactions in fully biotic microbial fuel cells for power generation and removal of unwanted nutrients. In addition, this review highlights the recent developments directed towards developing different types of microalgae MFCs. The different process factors affecting the performance of microalgae MFC system and some technological bottlenecks are also addressed.