Galdieria sulphuraria is a thermo-acidophilic microalga belonging to the Cyanidiophyceae (Rhodophyta) class. It thrives in extreme environments, such as geothermal sulphuric springs, with low pH, high temperatures, and high salinity. This microalga utilises various growth modes, including autotrophic, heterotrophic, and mixotrophic, enabling it to exploit diverse organic carbon sources. Remarkably, G. sulphuraria survives and produces a range of bioactive compounds in these harsh conditions. Moreover, it plays a significant role in environmental remediation by removing nutrients, pathogens, and heavy metals from various wastewater sources. It can also recover rare earth elements from mining wastewater and electronic waste. This review article explores the diverse applications and significant contributions of G. sulphuraria.