Interactive effects of solar radiation and inorganic nitrogen and phosphate on biofiltration capacity, biomass production, photosynthetic activity and the accumulation of bio-active compounds were studied in the red alga Gracilaria cornea grown in tanks with a seawater open-flow system during 35 days. Two light conditions were utilized: outdoor (O), full solar natural radiation, and indoor, inside of a greenhouse (G) where UV-B radiation was cut-off and part of the UV-A radiation was filtered. Two inorganic nitrogen and phosphate concentrations were used: High nutrients (HN; 100–200μM of NH4+ and 20μM of KHPO4) and Low nutrients (LN; 10–20μM of NH4+ and 1μM of KHPO4). Growth and biomass productivity were related to the daily integrated electron transport rate determined in situ, as an estimator of daily photosynthetic activity. Nitrogen uptake efficiency (NUE) was close to 100 % under LN, whereas under HN it ranged from 50 to 70 % in the first week of culture, decreasing to 10–15 % in the rest of the experimental period. Nitrogen uptake rate (NUR) ranged from 20 to 45 mmol N m−2 h−1 under HN, and 5 to 18 mmol N m−2 h−1 in LN treatments. Morphological and pigmentation changes were evident through the culture period. The thalli under HN were more reddish under the indoor treatments, than that in LN. The internal compounds increased throughout the experimental period. Mycosporine-like amino acids (MAAs) were accumulated under HN. N plays a photoprotective role due to both the increased photosynthesis and the MAA content. Maximal MAA productivity reached 113–253 mg MAAs m−2 d−1 under the O-HN treatment, the highest level reported until now in the bibliography. G. cornea could be used for bioremediation of high N content waters. In addition, under full solar radiation and high N availability produce high levels of bioactive compounds as MAAs, polyphenols and biliproteins for cosmeceutical applications.