Rapid urbanization and industrialization are regarded as the leading causes of environmental pollution, mainly aquatic pollution. This study was carried out to investigate the use of algal species Cladophora glomerata (CG) and Vaucheria debaryana (VD) as a cost-effective and environmentally friendly phycoremediators for composite industrial effluent. After the pot experimentation using algal species, a considerable decrease in electrical conductivity (EC: 49.10-81.46%), dissolved oxygen (DO: 3.76-8.60%), biological oxygen demand (BOD: 7.81-39.28%), chemical oxygen demand (COD: 7.81-39.28%), total suspended solids (TSS: 38.09-62.21%), and total dissolved solids (TDS: 38.09-62.21%) was observed. Before and after experimentation, the heavy metals were also quantified using atomic absorption spectrophotometry (AAS), and considerable reduction was observed in Cd (41.02-48.75%) and Pb (48.72-57.03%) concentrations. The Cd concentration determined in CTCG (control treatment for Cladophora glomerata containing tap water), CG (treatment pot for Cladophora glomerata containing industrial effluents), CTVD (control pot for Vaucheria debaryana containing tap water), and VD (treatment pot for Vaucheria debaryana containing industrial effluents) biomass was 0.06, 0.499, 0.035, and 0.476 mg/kg, respectively. The Pb uptake determined in CTCG, CG, CTVD, and VD was 0.32, 1.12, 0.31, and 0.49 mg/kg, respectively, using wet digestion method and ASS. The data revealed that C. glomerata has the highest bioconcentration factor for Cd (98.42%), followed by Pb (92.57%) in treatment pots containing industrial effluents (CG and VD). Furthermore, C. glomerata showed the highest bioconcentration factor for Pb (86.49%) as compared to Cd (75%) in tap water (CTCG and CTVD). The t test analysis revealed that heavy metal concentrations significantly (p ≤ 0.05) reduced through the phycoremediation process. The analysis found that C. glomerata removed 48.75% of Cd and 57.027% of Pb from industrial effluents. Phytotoxicity assay was also performed by cultivating Triticum sp. in order to analyze the toxicity of the untreated (control) and treated water samples. Phytotoxicity result shows that the effluent treated with both Cladophora glomerata and Vaucheria debaryana gives better wheat (Triticum sp.) plant % germination, plant height (cm), and root height (cm). The highest plant % germination was showed by treated CTCG (90%), followed by CTVD (80%) and CG (70%) and VD (70%). The study concluded that phycoremediation using C. glomerata and V. debaryana is one of the environment-friendly approaches. The proposed algal-based strategy is economically viable and environmentally sustainable that can be utilized for the remediation of industrial effluents., (© 2023. The Author(s), under exclusive licence to Springer Nature Switzerland AG.)