In general, sludge wastewater treatments from plants are often disposed of in landfills (60) rather than recycled, and this eventually affects the environment. Microalgae cultivation in wastewater has recently emerged as an alternate method for successfully treating wastewater in an ecofriendly way. The present study explores the possibility of growing microalgae in sludge effluent derived from industries. Industrial sludge acts as the only nutritional supplement for algal growth. The amount of organic carbon might increase the amount of protein and carbohydrates used for the production of lipids. The batch culture of different ratios of sludge wastewater was compared. The features of algal growth and biodiesel generation were studied, as well as the nitrogen and phosphate removal rates. The lipid levels of Chlorella sp. produced in this medium were clearly superior to those grown on the BG11 medium. Furthermore, this study indicated that the removal of industrial sludge and wastewater, in the absence of other nutritional supplies, allows for an efficient culture of Chlorella sp., followed by biodiesel generation. This has significant research and industrial implications since it will enable Chlorella sp. production in a mixed waste culture medium without the need for additional nutritional sources. © 2023 Sami-ullah Rather et al.