In an agroindustrial wastewater pond, a naturally occurring unicellular microalga, Chlorella vulgaris, was closely associated with the terrestrial plant-associative N2-fixing bacterium Phyllobacterium myrsinacearum. When the two microorganisms were artificially coimmobilized in alginate beads, they shared the same internal bead cavities, and the production of five microalgal pigments increased, but there were no effects on the number of the cells or the biomass of the microalga. The association, however, reduces the ability of C. vulgaris to remove ammonium ions and phosphorus from water. The bacterium produced nitrate from ammonium in synthetic wastewater with or without the presence of the microalga, and fixed nitrogen in two culture media. Our results suggest that interactions between microalgae and associative bacteria should be considered when cultivating microalgae for wastewater treatment.