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Poly-β-hydroxybutyrate (PHB) can be used as an effective thermoplastic and has many characteristics similar to those of standard commercial plastics like polypropylene. PHB based plastic substitutes are less flexible than traditional plastics; they are completely biodegradable and leave behind no residue. Algae are used to produce PHB, for bioplastic production which offers an opportunity in economic efficiency by reduced costs. Pseudoneochloris marina was isolated from different freshwater sources and screened for PHB production using Sudan black B and Nile Blue Stain. The production of PHB was optimized using different media and under various parameters like Aeration; Effect of phosphate and Sodium acetate etc. PHB was extracted using hot chloroform and the amount of PHB produced was estimated by reading the absorbance at 235nm. Characterization of extracted PHB was carried out by FTIR and NMR.