A continuous bioreactor for treating wastewater with nutrient recovery and biofuel production. this technique works on bioremediation principle with appropriately chosen algal consortia. the algal bioreactor is based on the three phase plug flow design and is optimised to work at variable flow rates. it results in over 90 per cent of nutrient removal and almost complete pathogen removal. the uniqueness lies in the reactor configuration, and selection of algal species adapted to various redox environments. additionally, the rapid harvest of the reactor by-product (valorised algal biomass) yields bio-diesel with quality fatty acids (c16-c18).