Algal incorporation into the biomass is important in an innovative wastewater treatment that exploits the symbiosis between bacterial activated sludge and microalgae (Chlorella vulgaris sp. Hamburg). It allows a good and easy algae separation by means of clarification. The effect of process parameters food to microorganisms ratio (F/M) and hydraulic retention time (HRT) on the process performance, evaluated by settleability, microalgae incorporation to biomass and nutrient removal, was studied. HRT hinted at a significant influence in the growth rate of algae, while F/M turned out to be important for stability when algae are incorporated into the biomass. This parameter also affects the total nitrogen removal of the treatment. Stable flocs with incorporated algae and supernatants with low free swimming algae concentrations were obtained at high HRT and low F/M values.