Kappaphycopsis cottonii, a prominent macroalgae species cultivated in an Indonesian marine culture, yields significant biomass, a portion of which is often rejected by industry. This study explores the potential valorization of rejected K. cottonii biomass through slow pyrolysis for bio-oil and biochar production, presenting an alternative and sustainable utilization pathway. The study utilizes a batch reactor setup for the thermal decomposition of K. cottonii, conducted at temperatures between 400 and 600 °C and varying time intervals between 10 and 50 min. The study elucidates the temperature-dependent behavior of K. cottonii during slow pyrolysis, emphasizing its impact on product distributions. The results suggest that there is a rise in bio-oil production when the pyrolysis temperature is raised from 400 to 500 °C. This uptick is believed to be due to improved dehydration and greater thermal breakdown of the algal biomass. Conversely, at 600 °C, bio-oil yield diminishes, indicating secondary cracking of liquid products and the generation of noncondensable gases. Chemical analysis of bio-oils reveals substantial quantities of furan derivatives, aliphatic hydrocarbons, and carboxylic acids. Biochar exhibits calorific values within the range of 17.52−19.46 MJ kg −1 , and slow pyrolysis enhances its specific surface area, accompanied by the observation of carbon nanostructures. The study not only investigates product yields but also deduces plausible reaction routes for the generation of certain substances throughout the process of slow pyrolysis. Overall, the slow pyrolysis of rejected K. cottonii presents an opportunity to obtain valuable chemicals and biochar. These products hold promise for applications such as biofuels and diverse uses in wastewater treatment, catalysis, and adsorption, contributing to both environmental mitigation and the circular economy.