In the present investigation, growth of the organisms was reduced due to presence of arsenic (III) and (V) in the culture medium. In comparison to arsenic (V), arsenic (III) had more toxic effect on microalgae. Among the different algal strains, blue green algal species Oscillatoria-Lyngbya mixed culture showed maximum efficiency in removing arsenic (64%) after 21 days of incubation and the same algal species could remove arsenic (III), but 60% after 21 days when incubated in 0.1 mg/l arsenic (III) containing medium. Maximum removal was observed at their exponential growth phase and also so sometime extended to the stationary phase.