<p>Many areas across the world have impacts from eutrophication, pollution, and depletion of surface and aquatic bodies. Researchers are becoming more and more interested in the method of treating wastewater with algae to remove fertilisers and other contaminants. Microalgae-based wastewater treatment presents a viable and eco-friendly substitute for traditional wastewater treatment, as it simultaneously removes nutrients and produces high-value biomass. Phycoremediation is a sustainable technique for cleaning up contaminated land and water by using both macro and microalgae. Thus, the polluted environment can be cleaned of phosphates, nitrates, heavy metals, pesticides, hydrocarbons, nitrogen, and phosphorus by the use of phycoremediation. Furthermore, the environment that supports algal development inhibits the growth of other contaminating microbes, preventing the spread of harmful germs and enhancing water disinfection. The function of microalgae in the treatment of various wastewaters, process variables influencing the treatment, and the direction of future research has all been covered in this review. Furthermore, it has been discovered that the algal biomass produced during phycoremediation has significant protein and fat contents, suggesting that it will be used in the food, feed, and biofuel industries.</p>