Algae-based nanoparticles fall under the green synthesized biogenic nanoparticles. These nanomaterials are regarded as the best as they make use of green chemistry materials for their synthesis. However, the supermagnetic nanoparticles derived from algae have shown several limitations as they have adverse effects on microbes, plants, and animal life. The improper disposal of industrial waste and pollutants, including algae nanoparticles, can contaminate soil and groundwater. In this process, iron nanomaterials can migrate between different environments. Notably, biogenic nanoparticles, such as nano zero-valent iron, are highly reactive, posing potential environmental risks. This therefore poses a major toxic impact on microorganisms and directly and indirectly affects the environment. These nanoparticles especially the iron oxide derived from algae have the potential to disturb the growth of aquatic plants, animals, and algae species like Chlorella vulgaris which are key for aquatic life. It is therefore paramount to study the implications of algal nanoparticles in remediation and come up with solutions on how these nanoparticles can be made to have minimal side effects on the environment.