In recirculating aquaculture systems (RAS), waste management of nutrient-rich byproducts accounts for 30–50% of the whole production costs. Integrating microalgae into RAS offers complementary solutions for transforming waste streams into valuable co-products. This review aims to provide an overview of recent advances in microalgae application to enhance RAS performance and derive value from all waste streams by using RAS effluents as microalgal nutrient sources. Aquaculture solid waste can be converted by hydrothermal liquefaction (HTL), then the resultant aqueous phase of HTL can be used for microalgae cultivation. In addition, microalgae generate the required oxygen while sequestering carbon dioxide. The review suggests a novel integrated system focusing on oxygenation and carbon dioxide capture along with recent technological developments concerning efficient microalgae cultivation and nutrient recovery techniques. In such system, microalgae-based biorefineries provide environmentally-conscious and economically-viable pathways for enhanced RAS performance and conversion of effluents into high-value products.