Rapid industrial development coupled with the increase in human population has led to rampant discharge of hazardous inorganic chemicals (heavy metals) and organic pollutants such as dyes, pesticides, and pharmaceutical compounds into the environment, resulting in an imbalanced ecosystem. This review focuses on the bioremediation of contaminated ecosystems by different microorganisms such as algae, bacteria, and fungi and tries to arrive at a mechanism for contaminant removal from the environment. The efficiency of removal of these harmful contaminants depends on the type of microorganisms used for bioremediation (algae, bacteria, and fungi) and mode of removal of contaminants (biosorption or bioaccumulation). Here, the recent developments in the field of bioremediation of organic and inorganic contaminants have been summarized.