Microalgae are microscopic photosynthetic organisms distinguished by their capacity to store carbon and develop quickly, and present a hopeful opportunity for producing sustainable biofuels and addressing environmental issues. This research investigates combining microalgae growth with biophotovoltaic (BPV) systems to simultaneously trap carbon dioxide and generate power. Through optimizing parameters such as cultivation conditions, electrode materials, and system configuration, we show notable improvements in power generation and carbon storage rates. Additionally, microalgae's ability to effectively remove contaminants and nutrients from wastewater highlights its potential for environmentally friendly wastewater treatment. The results of this study add to the expanding information on microalgae-related technologies, highlighting their importance in tackling worldwide issues like climate change and limited resources. Possible future research areas involve expanding production capacity, creating resilient strain modification techniques, and investigating new uses for microalgae biomass.