Microalgae have become well-known in the last few decades as producers of various compounds of high nutritional value, such as long chain polyunsaturated fatty acids, pigments including carotenoids, proteins, sterols, and vitamins. Among these compounds, carotenoids and phytosterols have been receiving increased attention based on the discoveries that they are capable of preventing various diseases such as cardiovascular problems, certain cancers, and neurological disorders, e.g. Alzheimer's, amyotrophic lateral sclerosis etc. The commercial exploitation of the microalgal strains Dunaliella salina and Haematococcus pluvialis for β-carotene and astaxanthin, respectively, led to the hypothesis for the current study that other microalgal strains may even have a higher potential to produce these compounds, especially when the underlying physiological pathways that lead to elevated levels of these compounds could be stimulated. The aims of this thesis were therefore (1) to screen microalgal strains for their potential to produce carotenoids and phytosterols and (2) to induce the top producer(s) to accumulate higher quantities of carotenoids and phytosterols and (3) to scale up the successful induction method(s) to explore large-scale commercial production of these metabolites. Moreover, the well-known sensitive nature of carotenoids (e.g. astaxanthin and β-carotene) to light, drying and preservation methods led to the idea that freeze-drying rather than the currently popular spray-drying methods could be more suitable for long-term storage of highly valuable carotenoids, such as astaxanthin.As a first step, screening was carried out on twelve microalgal strains collected from brackish and marine waters for carotenoid profiles and contents, antioxidant capacity (total phenolic content and oxygen radical absorbance capacity (ORAC), and phytosterol profiles and