Microalgae have been used during the past four decades in the Bio-industries for the production of high added value products and development of useful approaches with environmental applications. The fast growing rate, simple growth requirements and using sunlight as the major source of energy are the key factors for usage of algae. In the past 15 years, a considerable progress has been made regarding the use of microalgae for production of proteins, nutraceuticals, food supplements, molecular tags for diagnostics and fixation of greenhouse gases. Nevertheless, genetic manipulation of microalgae still remains a fairly un-explored area which could boost the production of bioproducts. It is anticipated that in the near future use of microalgae will revolutionize its applications in diverse industries. The aim of this work is to present a critical review on potential of microalgae for the production of high-added value molecules, their practical applications, and the role of genetic engineering in its utilization as a unique niche in industry. In addition, current challenges within synthetic biology approaches are discussed.