The present investigation was targeted on anaerobic digestion of Chroococcus sp. and utilization of resultant "Liquid Digestate" for its further biomass production. The algal biomass has biomethane potential of 317.31 +/- 1.9 mL CH4 g(-1) VSfed. Regular process monitoring revealed that process was stable throughout the experiments. The "Liquid Digestate" was explored as nutrient supplement for further algal growth. Diluted "Liquid Digestate" (30% concentration) was found optimal for algal growth (0.79 +/- 0.064 g L-1). Simultaneously, 69.99-89.31% removal in nutrient and sCOD was also recorded with algal growth. Interestingly, higher growth was observed when rural sector wastewater (1.29 +/- 0.067 g L-1) and BG11 broth (1.42 +/- 0.102 g L-1) was used for diluting the "Liquid Digestate". The current findings have practically proven the feasibility of hypothesized "closed loop process". (C) 2014 Elsevier Ltd. All rights reserved.