Gracilaria corticata var. cylindrica (GCC) was studied as a biofilter in shrimp farm water (SFW) and its growth and biochemical attributes in the medium were evaluated. GCC showed significant nutrient absorption from SFW, with maximum nitrate and phosphate uptake observed after the first 48 h. Nitrate depletion happened faster than phosphate, thus showing a higher affinity for nitrate uptake (78.4% removal) by GCC. Nutrient uptake kinetics followed the Michaelis–Menten curve, with Vmax values of 43.16 μM g dw−1 h−1 for nitrate and 67.50 μM g dw−1 h−1 for phosphate. Also, GCC’s low Km values (12.53 µM for nitrate, 1.91 µM for phosphate) indicated efficient nutrient utilization. GCC showed rapid growth in SFW, with a daily growth rate of 2.93 ± 0.19% d−1, comparable to the commercial MP1 media (3.54 ± 0.19% d−1) and greater to seawater (2.23 ± 0.13% d−1). Proximate analysis revealed consistent biochemical compositions across all three media, with carbohydrate and protein contents of 2.24 ± 0.41% and 0.76 ± 0.12%, respectively, in SFW. Pigment analysis revealed that pigment concentrations varied, with SFW having the greatest R-PE concentration (182.25 ± 32.77 µg g−1), followed by MP1 media and saltwater. R-PC concentrations followed a similar pattern, with SFW having the greatest concentration (85.73 ± 19.33 µg g−1). These findings highlight GCC’s potential as an efficient biofilter for reducing nitrate and phosphate levels in SFW, therefore offering a sustainable solution for aquaculture effluent management and the potential integration of GCC into shrimp farming practices.