The development of new biodegradable plastic materials from renewable sources is a major challenge for plastic industries to provide sustainable alternatives to petroleum plastic. Bio-based plastics are generally obtained from photosynthetic biomass such as higher plants, crops and more recently algae. This review aims to summarise the current state of bioplastic production in general with particular emphasis on algal cellulose and its derivatives (nanocellulose) for bioplastic applications. Despite the potential of algae as a feedstock for nanocellulose, little information is available on strain selection regarding cellulose content and downstream processing. This study lists possible optimization opportunities to increase the cellulose yield of algal biomass and the current status of its conversion to nanocellulose. Moreover, the findings of this review provide insight into existing knowledge and future direction in the algal cellulosic bioplastic domain based on algal bioplastic life cycle assessment studies. Finally, the review gives an overview of the main standards used for biodegradability certifications in view to limit the access to the biodegradable label when the required quality is not reached.