Abstract Microalgae research has attracted interest worldwide and in order to advance algal biotechnology in Brazil, government has been funding several projects. In the last 10 years, two main funds were provided by the National Council of Scientific and Technological Development (CNPq) agency to researchers in Brazil, who study the potential uses of microalgae for biomass, bioproducts and biofuels production. These funded projects addressed aspects of algal strain identification, development of algal cultivation techniques, designing photobioreactors and raceway ponds, modeling harvesting and dewatering process, maximizing biomass and oil productivities, characterizing chemical composition with different extractions systems and determining physiochemical properties of biodiesel. This review presents the state of art of algal research conducted by Brazilian institutions. Special attention is given to the recent progress on microalgal cultivation, high-value products extracted from microalgae and potential biofuels production. This review may serve as a policy instrument for planning next steps for algal research in Brazil as well as for attracting attention from international researchers who work with microalgae and would like to pursue a future partnership on algal research with Brazilian research institutions.