Rising concerns over environmental pollutants in air, water, and soil have prompted increased detection and quantification efforts, particularly focusing on the potential hazards to the biosphere. Nanomaterials have emerged as a promising solution to combat environmental pollution, demonstrating effectiveness against diverse pollutants. However, the conventional methods of nanomaterial synthesis are often criticized for their lack of economic viability, energy efficiency, and eco-friendliness. Addressing these challenges, phyconanoremediation represents a recent and environmentally friendly approach. This method involves the use of algal biomass to synthesize novel nanomaterials for there mediation of pollutants. This chapter provides a comprehensive overview of the application of algae in nanomaterial synthesis and their subsequent use in mitigating the impact of heavy metals and dyes. The narrative begins with an exploration of environmental pollution, the associated risks to public health, and existing remediation strategies. The synthesis mechanism of nanoparticles and various characterization methods are then discussed, highlighting the role of algal bioactive compounds in the synthesis process, whether as reducing agents, capping agents, or stabilizing agents. The chapter concludes by emphasizing the potential and significance of phyconanoremediation as a green and sustainable approach to environmental remediation. It also outlines the future outlook for this intriguing field, underlining its importance in addressing the challenges posed by environmental pollutants.