This paper reviews some of the most important aspects of microalgae as a potential source for biodiesel production. Microalgae are photosynthetic microorganisms that can grow rapidly in a variety of environments because of their unicellular or multicellular structure depending on the species. They have the advantage of self-reproduction using solar energy and converting it into chemical energy via photosynthesis. This process concludes a full cycle in a few days, obtaining higher lipid yields than terrestrial crops. This review shows several techniques and some methodologies used in the biodiesel production process from microalgae as well as the challenges that must be overcome for large-scale process and in bio-refineries. Copyright (C) 2016 John Wiley & Sons, Ltd.