Algae-bacteria consortia treatment has been found to be a promising method for the remediation of aqueous systems. Given the scope of previous reviews on algae-bacteria interactions, the sections on chemical signaling between algae and bacteria don't cover the current knowledge gap, and recent advances of algae-bacteria consortia in aqueous remediation don't explore the full depth. Accordingly, the specific aim of this review was to thoroughly screen and summarize recent peer-reviewed literature on (1) the mechanism of algal selection and enrichment in wastewater treatment; (2) interactions between algae and bacteria in ecological niche environments; (3) chemical signaling between algae and bacteria; (4) aqueous remediation using the algae-bacteria consortia; and (5) advanced treatment techniques combined with algae-bacteria systems for improved aqueous remediation. The main current challenges and future perspectives in algae-bacteria consortia wastewater treatment are proposed, including: (i) comprehensively establishing the network of interactions between algae and bacteria, especially quorum sensing and phycospheric interactions; (ii) developing a detailed understanding of the chemical exchange between microbial species based on molecular diffusion processes; (iii) tracking complex algae-bacteria interactions in aquatic environments using machine learning (ML), providing a potential tool for the design of beneficial and customizable synthetic microbial communities for wastewater treatment; (iv) integrating advanced treatment techniques (e.g., MBRs, UV photolysis and biological activated carbon) with algae-bacteria consortia systems, increasing the sustainability and applicability of treatment processes. Therefore, this review provides guidance and insights on the future development of algae-bacteria consortia treatment systems and their potential application for aqueous remediation.