Microbial fuel cell with 3% dairy waste was operated for 18 days and that with 6% dairy waste water for 33 days with the help of algae as analytic microflora mixture. Fuel cell with 3% dairy waste shown a maximum current peak at 145.6 µA at 13th day and in case of 6% dairy waste a maximum of 195.4 µA current was obtained. With an external resistance (22 ohm) the MFC having 3% dairy wastewater had maximum power density and current density of 0.149mW/m2 and 6.356 mA/m2 were observed on the 1st day which got reduced to 0.011 mW/m2 and 0.002mA/m2 respectively on the 15th day. For higher dairy wastewater concentration (6%) the values of maximum power density and current density of0.01036527 mW/m2 and 0.85663377 mA/m2 were observed on 1st day, which got reduced to 0.00166872 mW/m2 and 0.72642544 mA/m2 on 15th day. The reactor design for this study was quite successful for using photosynthesis ability of algae for oxygen (3.6 to 5.5 mg/l) supply to cathode. Beside this the green algae is also helpful in CO2 sequestration.