Microplastics (MPs) are impacting coastal and ocean ecosystem and also have been linked with ‘blue economy’, which accounts major portion to the total economy of a nation. The ocean serves as a sink for MPs, receiving them from rivers, runoff, industrial effluents, and direct waste discharge. Consequently, marine organisms are impacted, leading to indirect economic losses, and causing irreparable damage to the blue economy. In addition, the presence of chemicals and microorganisms on MPs is causing detrimental effects on marine organisms, leading to economic repercussions. Coastal tourism, a key aspect of the blue economy, relies on a sustainable and visually appealing environment, which is being threatened by rising marine debris, primarily plastic waste generated by tourists. The clean-up cost is very high, whereas the existing removal technologies do not have higher efficiency and are not that much cost effective. Thus, this study reviews the country wise economic effect of plastic pollution, along with existing policies, regulations and the management strategies to control MPs in marine system considering its potential impacts on sectors associated with marine resources vis-à-vis blue economy. © King Abdulaziz University and Springer Nature Switzerland AG 2024.