Algae-based techniques are rapidly emerging as transformative solutions for bioremediation and sustainable production, addressing critical environmental challenges. Engineered algal strains have been developed to enhance pollutant removal while simultaneously generating biomass that can be utilized for biofuel production and the synthesis of value-added compounds, contributing to economic growth. However, the efficiency of these remediation processes is influenced by factors such as microalgal strain selection, cultivation methods, and pollutant type. To overcome these limitations, ground-breaking biotechnological and technical advancements are being implemented. This chapter explores recent progress in algal biotechnology, including genome editing tools like Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/Cas and RNA interference (RNAi), as well as metabolic pathway engineering for improved biomolecule synthesis. Additionally, AI/ML-driven strategies are being employed to optimize cultivation and harvesting techniques. The chapter also highlights the potential of synergistic interactions between algae and other microorganisms for applications in wastewater treatment, biofuel production, and microbial fuel cells for electricity generation. Beyond outlining advancements in emerging technologies for algal bioengineering and co-cultivation strategies, this chapter delves into the significant challenges and prospects on the path to green remediation.