Microalgae have garnered significant interest among researchers and industries as a potential source of valuable products that can find applications in the food, feed, biofuels, cosmetics, pharmaceuticals, and nutraceuticals industries. Microalgae can remediate various waste streams. This review discusses the current trends in the valorization of algal biomass and proposes integrated biorefinery approaches to produce high‐value products by sustainable routes. In such processes, the waste streams can be used as a source of nutrients for the production of microalgal biomass, rich in high‐quality lipids, digestible proteins and bioactive compounds. The integrated approaches presented in this study offer cost‐effective and environment‐friendly processing techniques while expanding the bioproducts portfolio in the food and therapeutics sector. The simultaneous or sequential extraction of valuable compounds from microalgae makes the biorefinery proposition appealing for waste minimization, revenue diversification, and complete feedstock utilization. The systematic exploration of microalgae on a large scale is required to evaluate its future as a favorable resource for biorefinery products. This would also necessitate detailed techno‐economic, environmental, and lifecycle assessment for the biorefinery processes. © 2021 Society of Chemical Industry and John Wiley & Sons, Ltd