The efficiency of Anabaena sp. was analyzed for the phytoremediation of wastewater loaded with organic matter and heavy metals like chromium. Simulated wastewater was contaminated with chromium. A side-stream membrane bioreactor was used for the treatment of wastewater. A feed tank of 20 L capacity was used with a stirring arrangement. A ceramic microfiltration membrane composed of clay and alumina was obtained from Johnson & Johnson. The removal efficiency of chemical oxygen demand, biochemical oxygen demand, and chromium was evaluated. The process was used for algae harvesting and wastewater treatment. About 92% of chemical oxygen demand (COD), 98% chromium, and oil and grease were completely removed. Membrane fouling was explained by the pore blocking and cake resistance model. Stress in algal cells was determined from the superoxide dismutase (SOD) and catalase (CAT) analysis. The lipid content of algal cells was measured.