A new methodology of biological treatment and conversion of farm waste (manure and wash water) with the use of intensively cultivated phototrophic microorganisms (microalgae) is reviewed. Criteria for selection of microalgae and peculiarities of their intensive cultivation for efficient removal of biogenic elements from and destruction of the organic components of the wastes as well as the possibilities of cost-effective utilization of the resulting microalgal biomass are considered. Advantages and drawbacks of the new methodology are compared with those of conventional anaerobic techniques. Special attention is paid to the integrated technologies combining the aerobic conversion methods with microalgal post-treatment.