Chlorella vulgaris has considerable promise as a raw material for biofuel production since it has a high productivity per unit area, has a minimum influence on the environment, and does not significantly affect food security. Nevertheless, the low fatty content of their biomass poses a considerable economic obstacle for commercialization. Increasing the amount of biomass and lipids produced by these algae is essential for improving the economic feasibility of using them as biofuel sources. This review highlights the significance of identifying appropriate algal strains, namely those found in local environments, and utilising mutagenesis and genetic engineering techniques to create 'platform strains'. Prior endeavours have primarily concentrated on altering environmental and dietary parameters to enhance the production of biomass and lipids. Here, we review a scientific literature that examines biotechnological approaches and develops methodologies designed to increase lipid production, emphasising the importance of aligning engineering efforts with breakthroughs in DNA manipulation tools. In addition, the review research evaluates the present economic and commercial situation of algal biorefineries, including any related disadvantages. In summary, this thorough research highlights the importance of using creative methods to tackle the intricacies of lipogenesis and enhance the economic viability of producing biofuels from algae.