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Microalgae have emerged as potential candidates for biomass production and pollutant removal. However, expensive biomass harvesting, insufficient biomass productivity, and low energy intensity limit the large-scale production of microalgae. To break through these bottlenecks, a novel technology of immobilized microalgae culture coupled with wastewater treatment has received increasing attention in recent years. In this review, the characteristics of two immobilized microalgae culture technologies are first presented and then their mechanisms are discussed in terms of biofilm formation theories, including thermodynamic theory, Derjaguin-Landau-Verwei-Overbeek theory (DLVO) and its extended theory (xDLVO), as well as ionic cross-linking mechanisms in the process of microalgae encapsulated in alginate. The main factors (algal strains, carriers, and culture conditions) affecting the growth of microalgae are also discussed. It is also summarized that immobilized microalgae show considerable potential for nitrogen and phosphorus removal, heavy metal removal, pesticide and antibiotic removal in wastewater treatment. The role of bacteria in the cultivation of microalgae by immobilization techniques and their application in wastewater treatment are clarified. This is economically feasible and technically superior. The problems and challenges faced by immobilized microalgae are finally presented. [ABSTRACT FROM AUTHOR]