Microalgae, as photosynthetic microorganisms, possess significant potential in addressing environmental challenges and promoting sustainable practices. This review explores the wide-ranging applications of microalgae, emphasizing their pivotal roles in bioremediation, biofuel production, bioethanol generation, and biofertilizer development. Microalgae’s ability to thrive in various wastewater types, including municipal, agricultural, and industrial, signifies a sustainable approach to wastewater treatment. By efficiently removing nitrogen, phosphorus, carbon, and heavy metals, microalgae make substantial contributions to environmental sustainability. Furthermore, their integration into wastewater treatment processes not only reduces operational costs but also yields valuable biomass for various applications. Microalgae’s capacity to sequester carbon dioxide, coupled with their role in enhancing soil fertility, renders them invaluable tools in mitigating climate change and promoting sustainable agriculture. This review underscores the importance of ongoing research to fully harness microalgae’s potential, paving the way for a greener and more resilient future. It summarizes the effects of microalgae’s potential on agricultural soil and wastewater treatments, among other areas, by examining relevant works related to the topic. To achieve this, databases such as Google Scholar, Frontier in Microbiology, Microbial Cell Factory (MCF), Scopus, Web of Science, ScienceDirect, and Directory of Open Access Journals (DOAJ) were explored to identify studies on microalgae’s potential in various fields.