Xanthophylls are oxygenated carotenoids that serve a variety of functions in photosynthetic organisms and are essential for survival of the organism. Within the last decade, major nor advances have been made in the elucidation of the molecular genetics and biochemistry of the xanthophyll biosynthesis pathway. Microalgae, yeast, or other microorganisms produce some of the xanthophylls that are being commercially used due to their own color and antioxidant properties. Currently, only a few microalgae are being considered or already being exploitd for the production of high-value xanthophylls. However, new developments in molecular biology have important implications for the commercialization of microalgae, and make the genetic manipulation of the xanthophyll content of microalgae mure attractive for biotechnological purposes. Accordingly, the current review summarizes the general properties of xanthophylls in microalgae and the recent developments in the biotechnological production of xanthophylls.