Considerable research endavors are currently in progress exploring Using different types of microalgae for purifying dairy wastewate, aiming to contribute to the waste-to-bioproducts economy. Numerous studies have primarily concentrated on removing essential nutrients such as phosphorus and nitrogen from dairy wastewater through microalgae-based treatment methods. Microalgae exhibit a dual functionality, serving both as effective bioremediation and prolific producers of valuable components including lipids, proteins, pigments, antioxidants, and vitamins. Among these compounds, microalgal lipids are versatile in applications across human health, nutraceuticals, cosmetics, pharmaceuticals, and biofuels. This current review hunts into the pivotal role of microalgae in offering a promising solution for dairy effluent treatment, while also serving as a nutrient reservoir for production of biomass and the accumulation of lipids, such as polyunsaturated fatty acids (PUFAs), carotenoids (pigments), and oxylipins (oxygenated PUFAs). These accumulated compounds hold substantial potential for the production of biodiesel and other commercially viable products. The advancement of technologies related to biohydrogen production, systems biology, and algal trans genomics is advocated for a comprehensive approach towards sustainable development in this domain