Algae-based wastewater treatment systems have gained significant attention as sustainable and efficient solutions for nutrient removal, organic pollutant degradation, and biomass production. This comprehensive review explores the role of algae-based systems in wastewater treatment, covering key aspects such as nutrient uptake mechanisms, cultivation techniques, system design considerations, and environmental sustainability implications. Algae offer unique advantages for wastewater treatment, including high nutrient removal rates, CO2 sequestration, and the production of valuable biomass for biofuel production and nutrient recycling. Various cultivation methods, including open ponds, raceways, photobioreactors, and wastewater treatment wetlands, are evaluated for their suitability in different wastewater treatment scenarios. The integration of algae-based systems with conventional wastewater treatment processes, such as activated sludge and membrane bioreactors, is discussed to enhance treatment efficiency and resource recovery. Furthermore, the environmental sustainability of algae-based systems, including carbon footprint, water footprint, and ecosystem impacts, is assessed to identify opportunities for mitigating environmental impacts and promoting ecosystem resilience. Future research directions in algae-based wastewater treatment systems, such as optimization of cultivation conditions, development of novel algal strains, and techno-economic analysis of large-scale implementation, are proposed to address remaining challenges and accelerate the adoption of algae-based technologies in wastewater treatment practices. Overall, this review provides valuable insights into the role of algae-based systems as sustainable and versatile tools for wastewater treatment, highlighting their potential to address the growing challenges of nutrient pollution and water scarcity in the 21st century.