Different microalgal species possess the proficiency of tolerating heavy metals and enhance certain metabolic processes under metal stress. This is a novel study on C. minutissima under Chromium (III) stress to determine the IC50 value for optimization, to evaluate its phycoremediation potential and biofuel prospects. Varied range of Chromium Sulfate (20-120 mg/L) exposure on C. minutissima presented an IC50 value of 83.78 mg/L and ICPMS data stated that C. minutissima was able to eliminate 96.5% of Cr (III) from the medium with a BCF value of 0.96 and a high TI value of 1.035, reflecting on the high Cr (III) resistance ability and remediation potential of the selected microalgal species. A higher biomass productivity was observed for stressed cells (17.92 mg/L/day) than control (15.42 mg/L/day). The lipid content and productivity in the metal treated cells was elevated (21.21% and 0.77 mg/L in control, 30.12% and 1.26 mg/L under stress, respectively) with simultaneous maintenance of growth and photosynthetic functions. GC-MS study indicated a rise in MUFA under Cr (III) stress. This study presents significant insights for further investigation in utilization of C. minutissima for integrated approaches toward Cr (III) bioremediation and biodiesel production.