Excessive use of fossil fuels to satisfy our rapidly increasing energy demand has created severe environmental problems, such as air pollution, acid rain and global warming. Biofuels are a potential alternative to fossil fuels. First- and second-generation biofuels face criticism due to food security and biodiversity issues. Third-generation biofuels, based on microalgae, seem to be a plausible solution to the current energy crisis, as their oil-producing capability is many times higher than that of various oil crops. Microalgae are the fastest-growing plants and can serve as a sustainable energy source for the production of biodiesel and several other biofuels by conversion of sunlight into chemical energy. Biofuels produced from microalgae are renewable, non-toxic, biodegradable and environment friendly. Microalgae can be grown in open pond systems or closed photobioreactors. Microalgal biofuels are a potential means to keep the development of human activities in synchronization with the environment. The integration of wastewater treatment with biofuel production using microalgae has made microalgal biofuels more attractive and cost effective. A biorefinery approach can also be used to improve the economics of biofuel production, in which all components of microalgal biomass (i.e., proteins, lipids and carbohydrates) are used to produce useful products. The integration of various processes for maximum economic and environmental benefits minimizes the amount of waste produced and the pollution level. This paper presents an overview of various aspects associated with biofuel production from microalgae, including the selection and isolation of microalgal species, various cultivation and harvesting techniques as well as methods for their subsequent conversion into biofuels. (C) 2014 Elsevier Ltd. All rights reserved.