This article provides an overview of existing literature on the ultraviolet-B (UV-B) radiation effects on algae and cyanobacteria. We report on the effects of UV-B radiation to the growth and development, biomass, sensitivity, photosynthetic pigments, UV-B absorbing compounds, photosynthesis, protein and DNA damage, enzyme activity, nitrogen fixation and assimilation of nitrogen, protective mechanisms of algae and cyanobacteria, the accommodation of algae and cyanobacteria to environmental stress, and the effects to ecology system. Many of the studies show the dramatic effects of UV-B radiation; but typically these studies were conducted under conditions with supplemental UV-B irradiance that was higher than would ever occur outside experimental conditions or natural condition. A few of the studies reviewed used experimental conditions and supplemental UV-B irradiance that approached realism. Enhanced UV-B generally decreased chlorophyll content, whereas it increased UV-B absorbing compounds in many algae. Decrease in photosynthesis, particularly at higher UV-B doses, was due to both direct (effect on photosystem) and indirect (decrease in pigments) effects. The decreases in chlorophyll pigments and photosynthesis resulted in lower biomass. However, algae and cyanobacteria have evolved various avoidance and repair mechanisms to protect themselves against the damaging effects of UV radiation to acclimate to enhanced UV-B radiation. The review points to areas where further studies on the relationships among nitrogenase, Rubisco, antioxidase activity, signal, antioxidants, and free radicals under enhanced UV-B are needed to quantify the effects of UV-B radiation on algae and cyanobacteria. These studies are needed in order to develop dose response functions that can facilitate development of dynamic simulation models for use in UV-B and other environmental impact assessments.