Algae is emerging as a bioresource with high biological potential. Various algal strains have been used in traditional medicines and human diets worldwide. They are a rich source of bioactive compounds like ascorbic acid, riboflavin, pantothenate, biotin, folic acid, nicotinic acid, phycocyanins, gamma-linolenic acid (GLA), adrenic acid (ARA), docosahexaenoic acid (DHA), eicosapentaenoic acid (EPA), etc. Beta-carotene, astaxanthin, and phycobiliproteins are different classes of pigments that are found in algae. They possess antioxidant, anti-inflammatory and anticancer properties. The sulfur-coated polysaccharides in algae have been used as an anticancer, antibacterial, and antiviral agent. Scientists have exploited algal-derived bioactive compounds for developing lead molecules against several diseases. Due to the surge in research on bioactive molecules from algae, industries have started showing interest in the large-scale production of bioactive compounds having applications in sectors like pharmaceuticals, food, and beverage. In the food industry, algae are used as a thickening, gelling, and stabilizing agent. Due to their gelling and thickening characteristics, the most valuable algae products are macro-algal polysaccharides, such as agar, alginates, and carrageenan. The high protein, lipid, and nutrient content in microalgae makes it a superfood for aquaculture. The present review aims to describe various non-energy-based algae applications in pharmaceuticals, food and beverage, cosmetics, and nutraceuticals. This review attempts to analyze information on algal-derived drugs that have shown better potential and reached clinical trials.