Effluents from the industrial sector contain a wide range of contaminants in the medium; when they are insufficiently treated and discharged in the aquatic environment, they pollute aquatic matrices, causing deleterious effects on all the lifeforms. Industries such as tanneries, textiles, dairy, pharmaceuticals, paper and pulp, food processing, petrochemicals, iron, and steel generate wastewater containing a wide range of environmentally harmful contaminants. Chlorella species are robust species that can adapt and grow in extreme conditions and have remarkable stress response mechanism with good acclimatization and bioremediation properties. This review aims to provide new insights on the importance of Chlorella in the treatment of industrial effluents. It provides a comprehensive summary of investigations that have proved the potential of Chlorella vulgaris, Chlorella minutissima, Chlorella sorokiniana, Chlorella kessleri, Chlorella ellipsoidea, Chlorella emersonii, Chlorella pyrenoidosa in the elimination of contaminants. Furthermore, highlights the mechanisms that Chlorella undergo in the effluent medium towards the removal of various contaminants. © The Author(s), under exclusive licence to Springer Nature B.V. 2025.