Nutrient recovery and recycling are essential for preserving natural resources and mitigating the environmental impacts caused by human activities. With the increasing demand for essential nutrients, such as nitrogen (N) and phosphorus (P), due to population growth and the intensification of industrial and agricultural activities, significant challenges related to pollution and eutrophication of water bodies arise. In this context, microalgae stand out as a promising solution for capturing and converting nutrients present in wastewater that can be used for biotechnological purposes, combining efficiency in pollutant removal with the generation of biomass rich in biocompounds. Emerging technologies, such as the “omics-biology” approach and the use of photobioreactors, have been improving the efficiency of these processes. However, large-scale application still faces technical and economic challenges, such as financial viability and barriers associated with the cultivation and harvesting of microalgal biomass. The synergy between microalgae and other microorganisms expands the potential for waste utilization, allowing for an integrated and more sustainable approach. The main benefits of microalgae application include the removal of more than 90% of nitrogen and phosphorus present in wastewaters, the production of biofuels, fertilizers and nutritional supplements, and also, providing the fixation of carbon dioxide. However, for these technologies to become widely adopted, it is necessary to overcome regulatory obstacles, promote economic incentives and advance researches that enables the scalability of the systems. In this way, nutrient recovery and recycling can become fundamental pillars for the circular economy, promoting a closed and sustainable cycle of resources and contributing to the mitigation of environmental impacts.