Microalgae biotechnology has witnessed a significant transformation with the advent of CRISPR/Cas genome editing technologies, which enabled precise gene alterations that were unattainable using conventional methods. Traditional transformation techniques have advanced to CRISPR-based platforms, mainly due to significant developments in delivery methods like as systems based on nanoparticles and RNP (ribonucleoprotein complexes), which overcame species-dependent barriers and demonstrated the innovative influence of CRISPR technology on genetic engineering of microalgal systems over traditional methods. Effective metabolic engineering advancements for improved pigment, lipid and biomolecule synthesis are crucial approaches. For this, comprehensive analyses of gene deletions or knockouts, overexpression and regulatory changes from model organisms like Chlamydomonas reinhardtii to economically important organisms like Nannochloropsis are important. This study highlights elevated expression of biosynthetic genes and suppression of competitive pathways, along with significant developments in multiplexed genome editing, which enable coordinated pathway alterations by precisely targeting many genes. Despite novel approaches, existing constraints like as off-target consequences, regulatory barriers and editing efficiency constraints are critically evaluated for enhancement of CRISPR technology in microalgal modification. Revolutionizing developments such as optogenetics-CRISPR inclusion, pan-genomic genetic modifications of microalgal populations and AI-driven autonomous genome engineering will establish engineering microalgae as leading platforms for sustainable biotechnology.