The imminent need for transition to a circular biorefinery using microbial fuel cells (MFC), based on the valorization of renewable resources, will ameliorate the carbon footprint induced by industrialization. MFC catalyzed by bioelectrochemical process drew significant attention initially for its exceptional potential for integrated production of biochemicals and bioenergy. Nonetheless, the associated costly bioproduct production and slow microbial kinetics have constrained its commercialization. This review encompasses the potential and development of macroalgal biomass as a substrate in the MFC system for L-lactic acid (L-LA) and bioelectricity generation. Besides, an insight into the state-of-the-art technological advancement in the MFC system is also deliberated in detail. Investigations in recent years have shown that MFC developed with different anolyte enhances power density from several µW/m2 up to 8160�mW/m2. Further, this review provides a plausible picture of macroalgal-based L-LA and bioelectricity circular biorefinery in the MFC system for future research directions.