Demand for shrimp, particularly the eastern Pacific white shrimp Litopenaeus vannamei (Boone 1931), will continue to increase in Asian and worldwide seafood markets. Providing shrimp farms with a robust, healthy, and continuous supply of shrimp seed is a challenge that must be addressed to meet the demand. Shrimp feed during hatchery production still relies on live microalgae, despite many years of effort to find suitable full or partial-replacement diet alternatives. Successful mass production of microalgae for hatchery feed to obtain good quality shrimp seedstock depends on a number of environmental factors that determine the growth and nutritional values of various microalgal species. These factors include nutrients in the culture medium, light intensity, temperature, salinity, and pH. An overview of the use and the culture of microalgae in shrimp hatcheries is also presented and outlines the need for research for optimisation of algal diets for the rearing of L. vannamei seedstock in Asian hatcheries. Finally, the possibilities of using local isolates for hatchery operation are also highlighted.