The present limnological investigation is conducted to study the relationship between phytoplankton abundance and five important physicochemical factors in urban wastewater-fed seven fish ponds of Chota Nagpur Plateau area. A total number of 43 phytoplankton taxa representing four classes, namely Cyanophyceae (7), Chlorophyceae (29), Bacillariophyceae (5) and Euglenophyceae (2), are thriving in these ponds which may suggest that different nutrient-rich wastewater supports the diversity and abundance of the phytoplankton. Different values of diversity indices, results of post hoc analysis and rarefaction curve are depicted spatial variations of phytoplankton abundance and physicochemical factors. From the Principal Component Analysis, out of 43 phytoplankton species, 23 important species are extracted. The canonical correspondence analysis presents that most of the phytoplankton species densities are associated with higher values of the physicochemical variables in these ponds. Correspondingly, in the present study, Algal Genus Pollution Index (AGPI) is employed to study the water quality of seven sites. From the AGPI score, it is revealed that Site 4 has probable high organic pollution and Site 2 and Site 3 have moderate organic pollution. Therefore, long-term intensive studies and proper management are necessary to protect these ponds toward eutrophication and degradation, because these ponds not only act as a safeguard of livelihoods but also contribute significantly at local level food and water security and economic prosperity.