One potential answer to the urgent environmental problem of effluents tainted with dyes is wastewater treatment using microalgae. This article delves deep into the possibilities of microalgae for dye remediation, highlighting their capacity to extract pollutants and produce beneficial biomass. Controlling factors including temperature, light intensity, pH, and dissolved oxygen levels are crucial for maximizing growth and pollutant uptake. It is critical to choose microalgae species that can adapt to different types of wastewater and tolerate dye components. Photobioreactors and harvesting technology are examples of equipment that can affect the feasibility of such systems. Also, microalgal biomass quality varies, which impacts its potential for downstream uses. Because of its complicated chemistry and possible toxicity, industrial dye effluent poses significant issues. There are a number of different harvesting procedures to choose from, and each has its own set of advantages and challenges that make things more complicated. Optimizing growth conditions for microalgae is still a challenging process, but there are possible opportunities for improvement through genetic engineering and biotechnological approaches. A crucial part of long-term environmental management plans might be microalgae-based wastewater treatment, which could be achieved through persistent research and development, and creative solutions.