The production of plastic has exponentially increased in recent years, leading to the release of millions of tons of plastic waste into the environment annually. This waste can break down into smaller micro- and nanoplastics (MNPs) that are toxic and reactive to life forms, including humans. MNPs are particularly concerning for marine biologists and environmental scientists due to their toxic impacts on aquatic organisms, including algae, which are the foundation of the food chain. The review provides a comprehensive overview of the (eco)toxicity assessment of MNPs on aquatic algal communities, highlighting the novel insights gained into the ecotoxicity of various MNPs on algae and the associated health risks for aquatic ecosystems, food chains, and humans. This article also discusses current challenges and future research opportunities to address these challenges, making it a valuable contribution to the field of environmental science. Overall, this work is one of the first efforts to comprehensively assess the effects of MNPs on aquatic algae, emphasizing the significant risks that MNPs pose to essential ecosystems and human health.