Japan is one of leading countries in the utilization of and research on microalgae, and various findings have been obtained. Many papers, however, have been published in Japanese, which prevents the information spreading far and wide. The purpose of this review is to introduce recent advances in the utilization of microalgae as well as their basic research in Japan. The discussion covers practical applications ofChlorella andSpirulina biomass to health foods, food additives and feed supplements. The current use of microalgae as live feeds for larvae in aquaculture is also summarized. With respect to microalgal metabolites the present status of research is described with a greater emphasis on bioactive compounds, pigments and oils as potential drugs, coloring matters and biofuels, respectively.