The growing concerns over the depleting fossil fuels and increase in the release of greenhouse gas emissions have necessitated the search for the potential biomass source for alternative energy generation. In this context, third generation biomass specifically maroalgae has gained a lot of research interest in the recent years for energy and products generation such as ethanol, butanol, alginates, agars, and carrageenans. There are a few reviews available in scientific domain on macroalgal biomass utilization for bioethanol production but none of them has addressed precisely from phenolic precursor compounds to the entire ethanol production process and its bottlenecks. Here, we explained critically the processes involved in bioethanol, value added products and chemicals production utilizing macroalgal biomass as a feedstock along with its zero waste feasibility approach. Apart from this, we have also summarized the major issues linked to the macroalgae based biofuels and bioproducts generation processes and their possible corrective measures. Biorefinery is a promising way to generate multiple products from a single source with short processing time. Thus, this review also focuses on the recent advancement in the macroalgal biomass scaling up and how this could help in the growth of macroalgal biorefinery industry in the near future.