Microalgae have considerable interest owing to its phycoremediation potential and raw material for sustainable biofuel production. In this study, the performance of green algae Chlorella vulgaris (NRMCF0128) and Pseudochlorella pringsheimii (VIT_SDSS) was evaluated for the remediation of combined sewage and tannery effluent under different dilutions. Significant reduction in pollutant concentration was observed in the effluent: >65% for NH 3 -N, 100% for PO 4 -P, >63% for COD & >80% for total chromium, at higher dilutions (up to 30%) of tannery effluent (T) for both species. EDAX analysis confirms the intracellular accumulation of heavy metal chromium and other elements such as aluminum, zinc, and iron by both microalgae. In addition, the maximum yield of biomass achieved was 3.51 g/L (for 30% Tannery effluent) and 2.84 g/L (for 20% Tannery effluent) for Chlorella vulgaris & Pseudochlorella pringsheimii, respectively. Between the two species, Pseudochlorella pringsheimii has shown high lipid accumulation potential of 25.4% compared to Chlorella vulgaris (9.3%) at 20% Tannery effluent. Hence, it is evident that the green microalgae Pseudochlorella pringsheimii is promising for the sustainable treatment of combined sewage and tannery effluent along with biofuel production. © 2019 Elsevier Ltd