The textile industry heavily relies on dyes for coloration purposes. However, the effluent discharged from these processes contains both dyes and heavy metals. Traditional methods of treating wastewater from the textile industry, such as coagulation, membrane processes, electrolysis, and ion exchange, present economic and efficiency challenges. Furthermore, some of these approaches generate harmful sludge, diminishing their environmental sustainability. These microbial cells leverage bacterial activity to change their chemical power from textile industrial effluents substrates into electrical power. Through electron transfer to electrodes, bypassing conventional electron acceptors, microbial cells demonstrate recent technical feasibility. This breakthrough has sparked significant excitement, among the researchers highlighting MFCs as a potential source of sustainable “Bioenergy” by harnessing textile industrial effluents for power generation. Microalgae, efficient microorganisms, offer dual benefits in wastewater treatment: biomass recovery and value-added product generation (biofuels), while curbing greenhouse gases. Their photosynthesis-driven growth reduces CO2 emissions and aids in heavy metal and antibiotic removal from textile industrial effluents, highlighting their versatile role in sustainable solutions. The present review is aimed to comprehensively study the generation of bioenergy from effluents treatment in textile industry through the utilization of MFCs (microbial fuel cells) and microalgae, two extensively employed methods within the textile sector for harnessing bioenergy from the effluents produced by textile industrial processes. This study seeks to contribute to the advancement of bioenergy production from textile effluents by exploring these techniques and their application in treating textile effluents.