Nanomaterials (NMs) tailored via conventional physicochemical routes play havoc with the environment that has led to the evolution of competent green routes for the actualization of a circular economy on an industrial-scale. Algae belonging to the class Cyanophyceae, Chlorophyceae, Phaeophyceae and Rhodophyceae have been harnessed as nano-machineries through intracellular and extracellular synthesis of gold (Au), silver (Ag) and several other metallic nanoparticles. Algae are an appealing platform for the production of diverse NMs, primarily due to the presence of bioactive compounds such as pigments and antioxidants in their cell extracts that act as biocompatible reductants. Chlorella spp. and Sargassum spp. have been extensively explored for the synthesis of nanoparticles having antimicrobial properties, which can potentially substitute conventional antibiotics. Characterization of nanoparticles (NPs) synthesised from algae has been done using advanced spectroscopic, diffractographic and microscopic techniques such as UV-Vis FT-IR, DLS, XPS, XRD, SEM, TEM, AFM, HR-TEM, and EDAX. The present paper reviews the information available on algae-mediated biosynthesis of various NPs, their characterization and applications in different domains.