This review addresses the critical issue of illegal discharge of partially or untreated wastewater effluents, resulting in the accumulation of various inorganic and organic contaminants in the environment. Numerous industries release these toxins into the atmosphere, posing significant threats to wildlife and human health. Consequently, there is an increasing need to mitigate these harmful pollutants through innovative research initiatives. Traditional physicochemical methods for pollutant management are often energy-intensive and can lead to secondary pollution. In contrast, microalgae bioremediation has emerged as an effective and environmentally friendly method for reducing the impact of both organic and inorganic pollutants. Microalgae can decompose complex organic compounds into simpler, less harmful substances without producing additional secondary pollutants. Moreover, certain organic pollutants can serve as carbon sources for the growth of mixotrophic microalgae. The bioremediation potential of microalgae can be further enhanced through advanced modification techniques. This review employs descriptive analysis to explore the application of bioremediation technologies for the removal of organic and inorganic contaminants, assessing their viability and applicability for emerging organic pollutants. It underscores the potential of microalgae to provide cost-effective and ecological solutions for the remediation of various contaminants and outlines successful bioremediation methods. This review effectively elucidates the nature of harmful contaminants, current challenges in industrial-scale water purification, and potential future solutions.