Algae are a rich and varied source of pharmacologically active natural products. In this paper the biological properties of natural products derived from algae of the divisions Chlorophyta, Rhodophyta, Phaeophyta and Cyanophyta are discussed. The compounds described belong to a wide range of structural classes, e.g., alkaloids, aromatic compounds, macrolides, peptides and terpenes, all of which exhibit some biological activity.This paper provides an overview of the literature relating to algae of the divisions Chlorophyta, Rhodophyta, Phaeophyta and Cyanophyta that have afforded biologically active natural products. Within each division, information is subdivided according to the structural classes in which the active compounds belong. It is considered beyond the scope of this paper to mention every algal metabolite shown to possess some biological activity. Thus, examples were chosen in such a way as to demonstrate the range of chemical structures and biological activities encountered in algae, with an emphasis on the more recent literature. Prior to this compilation, many interesting and detailed reports have been published relating either to algal metabolites (1-10) or to marine natural products in general (11, 12), but no recent report has attempted to provide an overall view of bioactive secondary metabolites from algae.