Microalgae are emerging as a sustainable source of bioproducts, including food, animal feed, nutraceuticals, and biofuels. This review emphasizes the need to carefully select suitable species and highlights the importance of strain optimization to enhance the feasibility of developing algae as a sustainable resource for food and biomaterial production. It discusses microalgal bioprospecting methods, different types of cultivation systems, microalgal biomass yields, and cultivation using wastewater. The paper highlights advances in artificial intelligence that can optimize algal productivity and overcome the limitations faced in current microalgal industries. Additionally, the potential of UV mutagenesis combined with high-throughput screening is examined as a strategy for generating improved strains without introducing foreign genetic material. The necessity of a multifaceted optimization approach for enhanced productivity is acknowledged. This review provides an overview of recent developments crucial for the commercial success of microalgal production. Copyright © 2024 Alzahmi, Daakour, Nelson, Al-Khairy, Twizere and Salehi-Ashtiani. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY), http://creativecommons.org/licenses/by/4.0/.