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Rate of energy production is reflecting growth of nations and most of energy produced from the coal and natural gas-based thermal power plants (TPPs). Flue gas (point sources of emission) are main exhaustible form of gases that come from thermal power plants and are continuously promoting climate change and various environmental problems in global scenario. The present available technologies of flue gas treatment are energy and cost intensive process. Among the available techniques for fixation of flue-gases at sustainable part, microalgal biofixation of flue gas is an alternative promising and competent technology with assurance of eco-friendly path of low energy and low-cost solution for pollution abetment with production of value added products. According to mechanism involves during photosynthetic process of microalgae, it utilizes atmospheric CO2 and CO2 from flue gases for their growth. Past, present and future treatment technologies for flue gas with their challenges are discussed. Recent experimental studies and commercially available bioreactors are very particular for biofixation of flue gas from thermal power plants are also reviewed with their future perspectives. The commercial viability of process with specific microalgal strains and utilized biomass for further value-added products are suggested with future limitations.