Grease balls collected from a municipal wastewater treatment plant were melt-screened and used for cultivation of microalga Ochromonas danica, which could phagocytize droplets and particles as food. After autoclaving, the waste grease (WG) separated into two (upper and lower) phases. O. danica grew well on both, accumulating 48-79% (w/w) intracellular lipids. Initial WG contained approximately 50:50 triglycerides and free fatty acids (FFAs); over time, almost only FFAs remained in the extracellular WG presumably due to hydrolysis by algal lipase. PUFAs, mainly C18:2n6, C18:3n3, C18:3n6, C20:4n6, and C22:5n6, were synthesized and enriched to up to 67% of intracellular FAs, from the original 15% PUFA content in WG. The study showed feasibility of converting wastewater-originated WG to PUFA-rich O. danica algae culture, possibly as aquaculture/animal feed. WG dispersion was identified as a major processing factor to further improve for optimal WG conversion rate and cell and FA yields.