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Microalgae are rich source of various bioactive molecules such as carotenoids, lipids, fatty acids, hydrocarbons, proteins, carbohydrates, amino acids, etc. and in recent Years carotenoids from algae gained commercial recognition in the global market for food and cosmeceutical applications. However, the production of carotenoids from algae is not yet fully cost effective to compete with synthetic ones. In this context the present review examines the technologies/methods in relation to mass production of algae, cell harvesting for extraction of carotenoids, optimizing extraction methods etc. Research studies from different microalgal species such as Spirulina platensis, Haematococcus pluvialis, Dunaliella salina, Chlorella sps., Nannochloropsis sps., Scenedesmus sps., Chlorococcum sps., Botryococcus braunii and Diatoms in relation to carotenoid content, chemical structure, extraction and processing of carotenoids are discussed. Further these carotenoid pigments, are useful in various health applications and their use in food, feed, nutraceutical, pharmaceutical and cosmeceutical industries was briefly touched upon. The commercial value of algal carotenoids has also been discussed in this review. Possible recommendations for future research studies are proposed.