High moisture content in wet algal biomass hinders effective performance of current lipid extraction methods. An improved aqueous extraction method combing thermal and enzymatic lysis was proposed and performed in algal slurry of Nannochloropsis oceanica (96.0% moisture) in this study. In general, cell-wall of N. oceanica was disrupted via thermal lysis and enzymatic lysis and lipid extraction was performed using aqueous surfactant solution. At the optimal conditions, high extraction efficiencies for both lipid (88.3%) and protein (62.4%) were obtained, which were significantly higher than those of traditional hexane extraction and other methods for wet algal biomass. Furthermore, an excessive extraction of polar lipid was found for wet biomass compared with dry biomass. The advantage of this method is to efficiently extract lipids from high moisture content algal biomass and avoid using organic solvent, indicating immense potential for commercial microalgae-based biofuel production. (C) 2016 Elsevier Ltd. All rights reserved.