In the process of modernization and development, a human being always needed energy, which increased the dependency on the available sources of fossil fuel. Tetraselmis, a green algal genus belong to the order Chlorodendrales, are described by their strong green coloured chloroplast, flagellated cell bodies, and the occurrence of a pyrenoid within the chloroplast. In this study, four different strains of Tetraselmis species were successfully isolated from the saltpans Kovelong, Chennai, Tamil Nadu, India. The isolated strains were cultured in the normal basal medium and their morphological features were subsequently studied. The species of Tetraselmis straiata (T. straiata) Butcher BBRR1 was confirmed using molecular identification of 18S rRNA gene analysis and its observed systematic position. Among the four different isolates, T. straiata Butcher BBRR1 recorded a highest biomass concentration of 0.58 ± 0.021 g L-1, 15% lipids, 19% proteins and 17% carbohydrates when it grown under laboratory condition. Whereas, in open raceway ponds, T. straiata BBRR1 produced 0.95 ± 0.06 g L-1 biomass, 19% lipids, 28% proteins and 21% carbohydrates in an modified CFTRI I medium. The fatty acids profile of T. straiata Butcher BBRR1showed the presence of 33.14 % Palmitic acid, 22.64% 11- Octadecenoic acid and 21.94% Heptadecanoic acid. Since T. straiata BBRR1 can be cultivated in open ponds without a major contaminations, this species can be used as novel biomass feedstock to produce biofuels. This study may suggest the potential of T. straiata BBRR1 for biofuel production and could compete the energy demand in the future. In addition, this species contains healthful components of carotenoids, lipids and proteins, all these may provide a health benefits beyond basic nutrition.