Two acid-tolerant microalgae, Desmodesmus sp. MAS1 and Heterochlorella sp. MAS3, originally isolated from non-acidophilic environment, were tested for their ability to withstand higher concentrations of an invasive heavy metal, cadmium (Cd), at an acidic pH of 3.5 and produce biomass rich in biodiesel. The growth analysis, in terms of chlorophyll, revealed that strain MAS1 was tolerant even to 20 mg L-1 of Cd while strain MAS3 could withstand only up to 5 mg L-1. When grown in the presence of 2 mg L-1, a concentration which is 400-fold higher than that usually occurs in the environment, the microalgal strains accumulated > 58% of Cd from culture medium at pH 3.5. FTIR analysis of Cd-laden biomass indicated production of significant amounts of biodiesel rich in fatty acid esters. This is the first study that demonstrates the capability of acid-tolerant microalgae to grow well and remove Cd at acidic pH.