Algae are ubiquitous and capable of producing bioproducts, carbon sequestration, wastewater treatment, etc. and are the sustainable source of energy. The production of algae can be enhanced using different techniques including nanotechnology. Nanotechnology has been found to be applied in various sectors like, environment, industries, biomedical, agriculture, etc. Its introduction opened new doors for achieving sustainability and resource recovery. With application of different components of nanotechnology, it has been found effective in algal lipid production, biomass productivity, nutrient uptake, carbon sequestration, metabolic activities and remediation of the contaminated environment. In the present chapter, we have discussed the role of nanotechnology in improving algal biomass production and biofuel yield, along with wastewater treatment. Further efforts were also made to describe factors affecting the biomass production, biofuel and wastewater treatment using algae. Emphasis has also been given on challenges and future perspective on using nanotechnology in this field.