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Algae are photosynthetic organisms with ubiquitous distribution and contain varied forms of lipids owing to their extreme habitat diversity. This chapter presents detailed information on the structure and distribution of lipids, fatty acids and sterols in algae together with the genes and enzymes involved in their metabolism. The developments in acclimatory roles of lipids, fatty acids and sterols in response to changes in environmental factors such as nutrients, light, temperature and salinity have been discussed. Further, the current status of lipidomics in algae has also been discussed presuming its promising implications in elucidation of novel lipids and understanding of complex metabolic pathways.