Conventionally used as animal feeds, microalgae are now cultivated for products such as omega-3 fatty acids, resulting in a high amount of biomass as by-product. The biomass obtained after the extraction of DHA from Crypthecodinium cohnii is called `algal biomeal'. Being nutritionally rich, the biomeal has potential to be used as a value-added ingredient in human food and animal feeds. Evaluation of the biomeal properties resulted in the development of a water-based sauce formulation which was analyzed for its proximate composition, textural attributes and microbial stability. The sauce was rich in carbohydrate and protein with low fat and ash content. It was microbiologically and texturally stable under refrigeration. This research shows that development of a shelf-stable palatability enhancer using algal biomeal offers a new ingredient for the food and feed industries, whereas the ability to produce a value-added ingredient also offers a viable option for algal biomeal.