Production of intracellular metabolites or biofuels from algae involves various processing steps, and extensive work on laboratory-and pilot-scale algae cultivation, harvesting and processing has been reported. As algal drying and cell disruption are integral processes of the unit operations, this review examines recent advances in algal drying and disruption for nutrition or biofuel production. Challenges and prospects of the processing are also outlined. Engineering improvements in addressing the challenges of energy efficiency and cost-effective and rigorous techno-economic analyses for a clearer prospect comparison between different processing methods are highlighted. Holistic life cycle assessments need to be conducted in assessing the energy balance and the potential environmental impacts of algal processing. The review aims to provide useful information for future development of efficient and commercially viable algal food products and biofuels production. (C) 2014 Elsevier Ltd. All rights reserved.