Background: The use of algae as biofertilizers is fast-spreading in order to meet the excessive demands for agricultural products. To achieve this, enough algal biomass needs to be supplied year-round. Hence, algal nutritional components must be optimized through mixotrophic conditions. Materials and methods: Two algal isolates, namely, Phormidium sp. and Synechocystis sp. were tested for their ability to produce mixotrophic growth using different supplementations including molasses, aqueous Lepidium sativum, Trigonella foenum graecum seed extract and liquorice root extract, as well as acetate salt solution. The algae that showed highest growth under optimized mixotrophic conditions was further used in cantaloupe seed growth experiments. GC-MS was also carried out on the biomass of Phormidium on one of the fractions of extract using solvent system to reveal some dominant novel bioactive compounds in algal biomass. Results: The sugarcane molasses significantly enhanced the growth of the two algal strains, followed by Lepidium sativum extract only in case of Phormidium sp. Therefore, it was used in subsequent experiments. All growth parameters for that algae were significantly enhanced by the addition of these nutritional sources with molasses being the best supplement. The Phormidium sp. was rich in its content of chlorophyll, proteins, sugars as well as some novel bioactive compounds as revealed by GC–MS. The germination percentage of seeds treated with Phormidium sp. showed a significant increase over that of control. The different growth-related metabolites of total soluble proteins, total soluble sugars and all photosynthetic pigment contents of the seedlings were all significantly increased using this algal treatment. Discussion: The sugarcane molasses was superior in enhancing the algal growth due to its rich content not only of sugars but also of minerals and nitrogenous compounds. The use of aqueous extracts of seeds of Lepidium sativum enhanced growth significantly more than that of the control set as seeds are rich in proteins, omega-3 fatty acids, phytochemicals and other essential nutrients. In growth experiments carried out on cantaloupe seeds, there was a significant increase in germination percentage as well as all growth parameters due to the rich nutritional content of Phormidium sp. Conclusion: Mixotrophic growth achieved better algal biomass production than autotrophy in the case of Phormidium sp. The use of cheap resources such as sugarcane molasses, which is the waste from the sugar industry, as well as the common herb extract of Lepidium sativum, is a cost-effective approach. The use of this mixotrophically grown blue-green alga as a biofertilizer significantly enhanced plant growth and seed germination, indicating the usefulness of this eco-friendly agricultural strategy for achieving both food security and environmental sustainability.