Bioremediation of wastewater using microalgae is inexpensive, energy efficient, and effective in pollutant reduction as compared to conventional wastewater treatment technologies. Wastewater is a huge resource of minerals, nutrients, bioenergy, and valuable organic compounds and can be used for cultivation of microalgae. The microalgal biomass can be further used as biorefinery feedstock to produce biofuels and commercially important high‐value products. The potential of microalgae toward bioremediation and biorefinery applications presents the avenues for integrating the two processes to support circular bioeconomy and sustainability. This review presents a holistic view of integration of bioremediation and biorefinery processes using microalgae for deriving multiple benefits like pollutant removal, resource recovery, biofuel production, and generation of high‐value commercial products. The current status of high‐throughput microalgal screening technologies is also discussed since the selection of suitable microalgal strains is crucial for the application. The review further summarizes various processes involved in bioremediation and biorefinery systems such as cultivation, bioremediation, harvesting, and downstream processing. Recent trends in microalgal strain improvement for bioremediation and biorefinery applications through genetic engineering, bioinformatics, omics technologies, and genome editing tools are highlighted, while addressing the risks, biosafety issues, and regulatory affairs associated with genetically modified algae.