Algae (macroalgae and microalgae) are aquatic photosynthetic organisms largely used due to the variety of bioactive compounds in their composition. Macroalgae have caught the attention of the food, cosmetic, pharmaceutical, and nutraceutical industries. The food industry has recently used microalgae biomass, and several others have used it as biofuel source in wastewater treatments, for example. Many algae-derived secondary metabolites are known for their skin benefits, which include protection from UV radiations and prevention of rough texture, wrinkles, and skin flaccidity. It also avoids skin aging due to the presence of antioxidant compounds. The variety of cosmetic formulations using biocompounds or algae extracts is increasing since they also provide the desired safe materials from environmental resources. Although the cosmetic effects of some of these compounds were described in recent publications, the majority of biomolecules in algae species have not yet been studied and, therefore, are not be used for cosmetic purposed. Besides that, the majority of algae effects in cosmetics are described in patents without considerable explanation about the type of biocompounds or the mechanisms responsible for each cosmetic performance. Thus, this review aimed at a better understanding of the recent uses of algae in cosmetic formulations with potential applications for new researches.