Sustainability is a key principle in natural resource management. Due to negative environmental influence and limited availability, petroleum derived fuels need to be replaced by renewable biofuels.Therefore, there are vigorous research initiatives aimed at developing alternative renewable and potentially carbon neutral solid, liquid and gaseous biofluels as alternative energy resources. Microalgal biodiesel is the most potential substitute of fossil fuel for numerous specific advantages. Microalgae possess high photosynthetic rate and CO2 capture ability, short growth cycle and non influence to food supply. In this paper, the progress of microalgal biodiesel techniques was reviewed, including cultivation, harvesting of microalgae and preparation of microalgal biodiesel. It was found that microalgae biodiesel could progressively substitute a significant proportion of the fossil fuels required to meet the growing energy demand. Prospect of microalgal biodiesel technique was put forward at last.