Although microalgae are often studied for their biochemical extracts, utilizing them in a viable state opens new avenues for sustainable oxygenation in various systems. This study addresses the challenges of maintaining system homeostasis and presents an effective method for immobilizing live microalgae within poly(vinyl alcohol) (PVA) nanofibers using electrospinning technology. Characterization techniques, including scanning electron microscopy (SEM), fluorescence microscopy, Fourier‐transform infrared (FTIR) spectroscopy, and differential scanning calorimetry (DSC), were used to validate successful immobilization. Rheological studies were performed to investigate the influence of microalgae on the fiber morphology. Changing the PVA concentration, the fiber diameter could be regulated between 150 and 650 nm in the spinnable range. The addition of microalgae to the solution increased the viscosity of the prepared solution and reduced the resulting fiber diameter by approximately 2/3. Our results show that PVA nanofibers effectively encapsulate living microalgae and allow for sustained transport of nutrients and metabolites. The photosynthetic efficacy of the encapsulated microalgae was evaluated using dissolved oxygen measurements and showed two times higher rates of oxygen production and consumption compared with a film‐based approach. Our results show that PVA nanofibers effectively encapsulated living microalgae and allowed for the sustained transport of nutrients and metabolites. This innovative methodology provides a robust platform for immobilizing living microorganisms, with broad implications for applications ranging from regenerative medicine to sustainable agriculture.