Abstract: Microalgae has the advantages of high growth rates, high cellular lipid productivity and capability to bio-sequester carbon dioxide, and thus being widely studied as a new generation of biomass energy. The sustained investment in freshwater resources and nutrients during its growth period, however, is a major obstacle to large-scale cultivation. Combining a microalgae culture system with wastewater treatment is an economically viable wastewater resource utilization strategy. Based on the utilization mechanism of nutrients such as nitrogen and phosphorus during the growth of microalgae, we reviewed the application of microalgae in the biological wastewater treatment. The removal/inhibition ability of organic and inorganic compounds, heavy metals and pathogens were analyzed. The effects of environmental factors including the initial nutrient concentration, light, temperature, pH, salinity and gas exchange on the growth and metabolism of microalgae were investigated. In addition, combined with the problems faced by the large-scale application of microalgae, the application prospect and development direction of microalgae wastewater treatment were prospected, with the aim to provide references for the construction and management of water ecosystems.