Microalgae technology is a viable solution for environmental conservation (carbon capture and wastewater treatment) and energy production. However, the nutrient cost, slow-kinetics, and low biosorption capacity of microalgae hindered its application. To overcome them, algal-biochar (BC) can be integrated with microalgae to treat textile wastewater (TWW) due to its low cost, its ability to rapidly adsorb pollutants, and its ability to serve as a nutrient source for microalgal-growth to capture CO2 and biodiesel production. Chlorella vulgaris (CV) and algal-BC were combined in this work to assess microalgal growth, carbon capture, TWW bioremediation, and biodiesel production. Results showed the highest optical density (3.70 ± 0.07 OD680), biomass productivity (42.31 ± 0.50 mg L−1 d−1), and dry weight biomass production (255.11 ± 6.01 mg L−1) in an integrated system of CV-BC-TWW by capturing atmospheric CO2 (77.57 ± 2.52 mg L−1 d−1). More than 99% bioremediation (removal of MB-pollutant, COD, nitrates, and phosphates) of TWW was achieved in CV-BC-TWW system due to biosorption and biodegradation processes. The addition of algal-BC and CV microalgae to TWW not only enhanced the algal growth but also increased the bioremediation of TWW and biodiesel content. The highest fatty acid methylesters (biodiesel) were also produced, up to 76.79 ± 2.01 mg g−1 from CV-BC-TWW cultivated-biomass. Biodiesel’s oxidative stability and low-temperature characteristics are enhanced by the presence of palmitoleic (C16:1) and linolenic (C18:3) acids. Hence, this study revealed that the integration of algal-biochar, as a biosorbent and source of nutrients, with living-microalgae offers an efficient, economical, and sustainable approach for microalgae growth, CO2 fixation, TWW treatment, and biodiesel production.Graphical