Biomethanation of carbon dioxide (CO2) from flue gas is a potential enabler of the green transition, particularly when integrated with the power-to-gas chain. However, challenges arise in achieving synthetic natural gas quality when utilizing CO2 from diluted carbon sources, and the high costs of CO2 separation using amine-based solutions make large-scale implementation unfeasible. We propose an innovative continuous biomethanation system that integrates carbon capture and CO2 stripping through microbial utilization, eliminating expenses with the stripper. Stable continuous biomethane production (83–92 % methane purity) was achieved from flue gas-CO2 using a biocompatible aqueous n-methyldiethanolamine (MDEA) solution (50 mmol/L) under mesophilic and hydrogen-limiting conditions. MDEA was found to be recalcitrant to biodegradation and could be reused after regeneration. Demonstrating the microbial ability to simultaneously strip and convert the captured CO2 and regenerate MDEA provides a new pathway for valorization of flue gas CO2.