Microalgae are increasingly viewed as renewable biological resources for a wide range of chemical compounds that can be used as or transformed into biomaterials through biorefining to foster the bioeconomy of the future. Besides the well-established biofuel potential of microalgae, key microalgal bioactive compounds, such as lipids, proteins, polysaccharides, pigments, vitamins, and polyphenols, possess a wide range of biomedical and nutritional attributes. Hence, microalgae can find value-added applications in the nutraceutical, pharmaceutical, cosmetics, personal care, animal food, and agricultural industries. Microalgal biomass can be processed into biomaterials for use in dyes, paints, bioplastics, biopolymers, and nanoparticles, or as hydrochar and biochar in solid fuel cells and soil amendments. Equally important is the use of microalgae in environmental applications, where they can serve in heavy metal bioremediation, wastewater treatment, and carbon sequestration thanks to their nutrient uptake and adsorptive properties. The present article provides a comprehensive review of microalgae specifically focused on biomaterial production and environmental applications in an effort to assess their current status and spur further deployment into the commercial arena.