Pharmaceuticals and personal care products (PPCPs) are a group of emerging micro-pollutants causing detrimental effects on living organisms even at low doses. Previous investigations have confirmed the presence of PPCPs in the environment at hazardous levels, mainly due to the inefficiency of conventional wastewater treatment plants (CWWTPs). Their stable structure induces longer persistence in the environment. Microalgae are currently used to bioremediate numerous pollutants of different characteristics and properties released from the domestic, industrial, agricultural, and farm sectors. CO2 mitigation during culture and the use of biomass as feedstock for biodiesel or biofuel production are, briefly, other benefits of microalgae-mediated treatment over CWWTPs. This review provides a comprehensive summary of recent literature, an overview of approaches and treatment systems, and breakthrough in the field of algal-mediated removal of PPCPs in wastewater treatment processes. The mechanisms involved in phycoremediation, along with their experimental approaches, have been discussed in detail. Factors influencing the removal of PPCPs from aqueous media are comprehensively described and assessed. A comparative study on microalgal strains is analyzed for a more efficient implementation of future processes. The role of microalgae to mitigate the most severe environmental impacts of PPCPs and the generation of antibiotic-resistant bacteria is discussed. Also, a detailed assessment of recent research on potential toxic effects of PPCPs on microalgae was conducted. The current review highlights microalgae as a promising and sustainable approach to efficiently bio-transform or bio-adsorb PPCPs.