This study explores the dual application of a three-chamber microbial fuel cell (MFC) for domestic wastewater treatment and electricity generation, while also utilizing algae cultivation for lipid extraction. The MFC consists of a zinc anode and copper cathode and is designed to treat eutrophic wastewater sourced from a local environment while simultaneously producing electrical energy. The system's performance is evaluated by analyzing various parameters, such as turbidity, total dissolved solids (TDS), and chemical oxygen demand (COD). The results indicate significant reductions in turbidity (86%), TDS (42%), and COD (93%), demonstrating the MFC's efficiency in treating wastewater. The system also produced a peak voltage output of 120 mV and a power density of 0.0144 W/m³, reflecting its capability for bioelectricity generation. The integration of algae in the cathode chambers further enhances the system's performance by improving oxygenation and providing a substrate for microbial growth. This algal cultivation resulted in biomass yields ranging from 6.85 to 7.5 g/L, with lipid extraction efficiencies of between 1.37 and 1.5 g of lipids per gram of biomass. This highlights the potential of using algae-assisted MFCs for not only wastewater treatment but also sustainable bioenergy production, offering a promising approach for integrated systems that address both environmental and energy challenges. This study suggests that algae-assisted MFCs could be a scalable and eco-friendly solution for wastewater treatment and bioenergy generation. However, further research is needed to optimize the selection of algal strains, improve electrode materials for enhanced efficiency, and scale the system for practical and large-scale applications. The findings underscore the potential of combining renewable bioenergy technologies with wastewater management to achieve a more sustainable future.