<p>The rapid rise in carbon dioxide emissions, particularly from human activities, plays a pivotal role in exacerbating environmental devastation and raising significant concerns about climate change. Hence, it is crucial to develop sustainable and effective techniques that successfully reduce CO₂ emissions while meeting the current population’s needs. Biotechnological approaches, particularly microalgae-based systems, have emerged as highly efficient for inorganic carbon assimilation. Microalgae are typically cost-effective and rapidly cultivate even under harsh conditions, exhibit resistance to severe environments, and encompass minimal production costs, enabling them to be a sustainable solution for CO₂ mitigation. Similarly, nanotechnological approaches exploit nanoparticles with unique surface and stability properties that enhance CO₂ capture effectiveness. Despite their strong potential, challenges remain regarding cost, energy requirements, and scalability of nanoparticle applications. This review discusses the importance of nanoparticles along with the challenges related to their effective absorption. Furthermore, the study epitomizes the high efficacy of CO₂ fixation through both biotechnological and nanotechnological approaches, emphasizing recent progress in nanomaterials and microalgae-based systems. Prospects should explore hybrid techniques to address production and scalability challenges and ensure safe integration of these technologies for practical deployment in climate change mitigation.</p>