The coexistence of algae and bacteria in nature dates back to the very early stages when life came into existence. The interaction between algae and bacteria plays an important role in the planet ecology, cycling nutrients, and feeding higher trophic levels, and have been evolving ever since. The emerging concept of algal-bacterial consortia is gaining attention, much towards environmental management and protection. Studies have shown that algal-bacterial synergy does not only promote carbon capture in wastewater bioremediation but also consequently produces biofuels from algal-bacterial biomass. This review has evaluated the optimistic prospects of algal-bacterial consortia in environmental remediation, biorefinery, carbon sequestration as well as its contribution to the production of high-value compounds. In addition, algal-bacterial consortia offer great potential in bloom control, dye removal, agricultural biofertilizers, and bioplastics production. This work also emphasizes the advancement of algal-bacterial biotechnology in environmental management through the incorporation of Industry Revolution 4.0 technologies. The challenges include its pathway to greener industry, competition with other food additive sources, societal acceptance, cost feasibility, environmental trade-off, safety and compatibility. Thus, there is a need for further in-depth research to ensure the environmental sustainability and feasibility of algal-bacterial consortia to meet numerous current and future needs of society in the long run. Display omitted •Algal-bacterial consortia can tackle environmental issues.•Algae and bacteria are efficient in carbon capture and greenhouse gases mitigation.•Algal-bacterial technology fosters environmental sustainability in the green industry.•Industry 4.0 technologies can optimize performance and reduce ecological impacts.•In-depth research is vital to address the challenges of algal-bacterial biotechnology.