The present study aims to demonstrate the potential of microalgae Chlorococcum humicola for treatment of dairy industry effluent and reduction of its pollution load with the cultivation of microalgae in the same effluent. Dairy industry wastewater supplies the required nutrients for the growth of C. humicola and its growth was comparatively higher in 50 % dairy industry effluent as compare to Bold basal growth medium. Optimization of growth parameters of algae showed that growth of C. humicola was favoured by alkaline pH and optimum growth was observed at pH 8, whereas acidic pH does not favour the growth of selected algae. The exponential growth phase of C. humicola was achieved between 3-7 days, at 20˚C temperature, a further increase in temperature decreases the algal growth. The results for the effect of different concentration of dairy wastewater (0, 10, 25, 50, 75 and 100 %) on biochemical content (protein, chlorophyll a, carbohydrate) of C. humicola revealed that 50 % wastewater concentration was more efficient for enhancement of biochemical content of microalgae as compare to control. The result further showed considerable reduction in the organic pollution load of dairy wastewater as biological oxygen demand (BOD) and chemical oxygen demand (COD) reduced to 72 and 78 % respectively, after 15 days of treatment with C. humicola. The results also showed a reduction in the nutrient concentration of dairy wastewater such as nitrate, phosphate and sulphate by 92, 43, 62 % respectively, after 10 days of treatment and 96, 67 and 78 % respectively, after 15 days of microalgal treatment as compared to control (without microalgae). These findings suggested that dairy industry wastewater was a good nutrient supplement and can be directly used for mass cultivation of C. humicola without requiring additional nutrient supplements and also the microalgae C. humicola has a great potential for the treatment of dairy industry wastewater