Water covers 71% of the Earth's surface, and is vital for all known forms of life.But only 2.5% of the Earth's water is freshwater. Due to industrialization and Urbanization it is becoming more polluted and risk of this polluted water consumption and its sanitation problem is increasing day to day in most of the developing countries, so it has become anessential need for today's environment to protect water from getting polluted or develop its cost effective remedial method for its protection. Literature survey was done to find out the new, low-cost waste water treatment methods in which we had found that Microalgae has the natural wastewater treatment properties. It has the self cleansing power due to which it abstracts Nitrate 99%, sulphate 84% and Phosphate 73% for its growth and development. During their growth they trap sun light and CO 2 from the environment for their photosynthesis. In the mean time of review of literature we had found that waste water treatment using microalgae has number of positive applications over the conventional methods as it is useful in Wastewater treatment, CO2 sequestration, Cost effective, Sanitation and also in the production of renewable sources of energy such as Biodiesel, Biofuel, Glycerol, Methane gas, Hydrogen gas, Biofertilizers etc. The overall review has concluded that this Green technical method for treatment of municipal waste water using microalgae should be applied in all developing and developed countries for wastewater treatment so as to protect the environmental pollution causing due to waste water from industrial and Societies effluents.