Worldwide there is an immense demand for plastic material that results in “white pollution”. Petrochemical-based plastic is used all over the world which leads to adverse impacts on every sphere of the earth. However, many steps have been taken to control this plastic pollution globally, such as chemical treatments, plastic waste incineration, sanitary landfilling, and 7 R programs. Still, plastic pollution is one of the major international problems. Non-biodegradable plastic would not eradicate from our environment until we have an economically feasible and more biodegradable substitute. In recent years algae, especially microalgae, have got attention worldwide, owing to their various applications. Microalgae is one of the sustainable ways of bioplastic synthesis as during cultivation it also purifies wastewater. This review paper has summarized various species of microalgae used for the synthesis of bioplastic, their cultivation system, and methods for bioplastic production by using microalgae biomass, followed by multiple challenges, solutions, and future prospects.