Algae is a photosynthetic microorganism, which can be found in the diverse ecosystem. Soil algae occur in different soil habitats such as tropical, sub-tropical, arid, semi-arid, and Polar Regions. Soil algae play a pivotal role in nitrogen fixation, and those found in the surface of the soil help in promoting the growth and development of plants. The soil algae also prevent the loss of nitrogen through the process of ammonia volatilization. The microalgal species such as Anabaena sphaerica, Westiellopsis prolifica, Aulosira fertilissima, Nostoc hatei, and Cylindrospermum majus increase the availability of nitrogen, thereby increasing the crop yield. The biofilm formed by various microalgal species also uplifted the nitrogen concentration in the soil. Hence, the nitrogen recovered by the soil algae is utilized by the plants for their growth and development. This chapter summarizes the general characteristics, ecology, as well as the beneficial role of soil algae in the recovery of nitrogen.