Algae include primitive thalloid plants having enormous uses. Despite of many beneficial activities, some algae cause sickness or death to the living organisms, called 'toxic algae'. Not only fresh water algae are toxic but marine algae are also toxic. A species may have different strains, some of which may be toxic and other non-toxic. Toxic algae affect different body parts of an organism. Algal blooms which generally appear in green, blue or brownish colour in warm seasons for longer duration, can look like foam, scum, or mats or like paint floating on the surface of water, contain a large numbers of pigmented cells and hence composed of bio-toxins. These toxins are secondary metabolites which are produced by a varity of algal species and harmful to organisms. The present paper describes the toxic algae belonging to Cyanophyceae, Dinophyceae, and Chlorophyceae groups; toxins produced by algae, and the effects of algal poisoning on animals and human beings.