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+/-1.9mL CH<SUB>4</SUB>g<SUP>-1</SUP> VS<SUB>fed</SUB>. 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+/-0.064gL<SUP>-1</SUP>). 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+/-0.067gL<SUP>-1</SUP>) and BG11 broth (1.42+/-0.102gL<SUP>-1</SUP>) was used for diluting the ''Liquid Digestate''. The current findings have practically proven the feasibility of hypothesized ''closed loop process''.