The increase in anthropogenic activities across the globe is rising the water scarcity problem at an alarming rate. In India, only 30% of the sewage generated is getting treated and the remaining is discharged into the water bodies. Due to this, nutrients like nitrogen and phosphorus are creating a detrimental effect on the ecosystem due to their excess concentrations in the environment. The non-compliance of treatment quality in most of the conventional centralized treatment systems calls for source separation and state-of-the-art treatment practices. Around 60-75% of domestic wastewater is contributed by greywater, and the reuse of greywater from the bathing, kitchen, and laundry sources is a recommended paradigm shift to counter the above-mentioned problem. In conventional treatment systems like activated sludge processes, sequential batch reactor, membrane bioreactor, etc. very limited removal of nutrients has been reported by earlier researchers. In the present work, the degradation of nutrients in the greywater using the microalgae, namely Chlorella Vulgaris, has been studied in detail. Greywater samples were collected from different parts of the metropolitan city Chennai, analyzed for water quality parameters, and a water quality index (WQI) to estimate the desired level of treatment has been developed. The remediation study using algae showed a substantiate removal of Total Nitrogen (TN), Total Phosphorous (TP), and Total Organic Carbon ranging from 81-89%, 91-97%, and 60-75% respectively. Treated greywater is found to have total nitrogen and total phosphorus varying from 1.2 to 2.58 mg/L and from 0.2 to 0.6 mg/L respectively, which are well within the prescribed standards of treated sewage recycle and reuse by CPHEEO for toilet flushing ( 10 mg/L for TN, 1 mg/L for TP). Other treatment techniques like Sand filtration and Granular Activated Carbon filtration have also been studied for their performance in the removal of TN and TP in order to compare its efficiency with algal treatment. The filtration studies were found to have very minimal removal of TN, TP, and TOC. A mathematical model is also developed to estimate the growth and productivity of microalgae in open algal ponds. The variation of specific growth of algae with light intensity and pond depth has been studied using the developed model.