Microalgae is emerging as a promising platform for the production of recombinant proteins of therapeutic importance. Since microalgae are safe for oral consumption and some microalgal species can form extracellular vesicles, they can potentially be used as edible vaccines or drug-delivery vehicles in addition to their status as naturally rich sources of nutraceutical bioproducts. This article focuses on recent advances in the field of recombinant protein production in microalgae, and developments toward the use of microalgae as a vehicle for drug delivery.