From tannery effluent (TE) severely polluted with heavy metals (HMs viz., Cr, Cu, Cd, and Pb), hydrophytic phytoextraction remains a challenge as transplanted plants succumb to death on facing acclimatization shock. Current study was aimed at diluting TE with harvested rainwater (HR) for improving HM phytoextraction potential of Phragmites australis (a hydrophyte) assisted with phycoremediation of coupled algae (viz., Oedogonium sp. and Pithophora sp.). The TE:HR dilutions (TEDs) 0, 25, 50, 75, and 100% (v/v) included three sets: set-1 included algae only, set-2 included P. australis only and set-3 included P. australis coupled with combined algal inoculum. Results showed that P. australis assisted with HR dilution and combined algal inoculum showed significantly greater uptake of HMs from each of the TEDs than respective control treatments. Combined algal application in the TEDs proved phycoremediation assistants based on their bioaccumulation factor (BF). The dry biomass of P. australis in TEDs applied with phycoremediation assistants remained greater than uninoculated ones. Overall, HM translocation factor (TF) of P. australis for Cr, Cu, Cd, and Pb remained ≥ 1. The study concludes that HM phytoextraction is substantially increased when concentrated TE is diluted with HR and assisted with phycoremediation of HM tolerant algae.