Microalgae contains various bioactive compounds such as lipidss, proteins, carbohydrates, and carotenoids. The demand for lipids in the food industry from edible and non-edible sources is increasing daily. The current investigation focuses on the growth and characterization of lipids extracted from locally isolated microalgae. Bligh-Dyer and Folch methods were tested for the most appropriate lipid extraction method. The lipids from Chlorella vulgaris and Scenedesmus dimorphus were extracted using polar and non-polar solvents in different ratios. The lipids were quantified by UV-visible spectrophotometry. The lipid yield using Folch and Bligh-Dyer methods was 23.25 and 17.13 % for Scenedesmus dimorphus and 22.24 and 16.13% for Chlorella vulgaris, respectively. Folch method was documented as the most efficient and appropriate for microalgae lipid extraction. Fourier transform infrared spectroscopy confirmed the presence of –CH2, –OH, -C=O and -C=C organic compound groups. Stearic acid (38.81%), palmitic acid (42.59 %) and Oleic acid (27.56%) were the prevailing fatty acids in both species. The current study’s findings revealed that Scenedesmus dimorphus had a useful content of lipids and that the local Scenedesmus dimorphus and Chlorella vulgaris are the ideal candidates to be used in the food and fuel industry.