Microalgal biofuels have emerged as a promising avenue for meeting the growing demands for clean and efficient energy. However, the integration of microalgae into the biofuel industry is still in the early stages, primarily due to low productivity and high production costs. To address these challenges, researchers are actively exploring innovative methods to enhance biomass, concurrently increasing lipid and carbohydrate content. This review paper discusses the unique attributes of microalgae that make them attractive candidates for biofuel production. Advancements in cultivation techniques, such as photobioreactor design, co-cultivation strategies (microalgae-microalgae, microalgae-bacteria, and microalgae-fungi), and the optimization of nutrient conditions (carbon, nitrogen, and phosphorus) as well as environmental factors (salinity, light, and temperature) were explored to enhance biomass and lipid productivity. Furthermore, genetic engineering tools (genetic elements, gene interference , genome editing, and genome reconstruction) and omics technologies (genomics, transcriptomics, and proteomics) were discussed to gain a deeper understanding of microalgal lipid synthesis metabolism. The application of these techniques in microalgae facilitates enhanced lipid productivity, improved stress tolerance, optimized carbon sequestration and utilization, and reduced harvesting and processing costs. The study also delves into the decision-making process related to software selection, with the overarching goal of improving performance, profitability, and sustainability while mitigating risks, operational costs, and environmental impacts. Additionally, this review highlights future perspectives on large-scale microalgal biofuel production and its industry.