Rising concerns over fossil fuel depletion and plastic pollution have driven research into biodegradable alternatives, such as polylactic acid (PLA). Microbial fermentation is preferred for lactic acid production due to its ability to yield enantiomerically pure lactic acid, which is essential for PLA synthesis, unlike the racemic mixture from chemical synthesis. However, commercial lactic acid production using first-generation feedstocks faces challenges related to cost and sustainability. Macroalgae offer a promising alternative with their rapid growth rates and carbon capture capabilities. This review explores recent technological advancements in macroalgae physicochemical characterization, optimization of fermentation conditions, and innovative pretreatment methods to enhance sugar conversion rates for L-LA production. It also covers downstream processes for L-LA recovery, presenting a complete macroalgal biorefinery system. Environmental impacts and economic prospects are assessed through exergy and techno-economic analyses. By valorizing macroalgae detritus, this study underscores its potential to support a sustainable biorefinery industry, addressing economic feasibility and environmental impact.