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Water pollution due to heavy metals are spreading world-wide along with industrial progress. In this research work cultivation of Spirogyra sp. & Oscillatoria sp. were done and wastewater treatment of heavy metal such as Cr, Cd & Pb was accumulated by algae. After treatment of algae Spirogyra sp. & Oscillatoria sp. were decomposed and to prepare compost. The production of biogas from algal biomass becomes economically feasible and cheaper. This present study revealed that the nutrient content of natural compost was recorded about C- 38.5%, N- 3.31%, P- 1.02%, & K- 3.42%, heavy metal content of Cd- BDL, Pb- 0.21ml/mg & Cr- 0.01ml/mg and biogas value 19.19 l/kg. The maximum value of biogas was recorded at 30 ppm concentration (27.95 l/kg) of algal compost as compare to natural compost (19.19 l/kg) in Spirogyra sp. The experimental study concluded that the selected algae showed better biogas production as compared to natural. Whereas out of selected two algae, Spirogyra sp. gave better outcome as compare to Oscillatoria sp. Thus, Study suggested that algal biomass constitute a promising, efficient, cheap, decayed material for making compost and biogas production.