In this study, the ability of algae to treat a wood-based pulp and paper industry wastewater was investigated. Tests were performed in batch reactors seeded with a mixed culture of algae. Under different lighting and initial wastewater strength conditions, changes in COD, AOX and color contents of reactors were followed with time. Algae were found to remove up to 58% of COD, 84% of color and 80% of AOX from pulp and paper industry wastewaters. No remarkable differences were observed in COD and color when light intensity and wastewater strength were changed, while AOX removals were strongly affected. Algal species identification studies revealed that some green algae (Chlorella) and diatom species were dominant in the treatment. The study also showed that algae grew mixotrophically, while the main mechanism of color and organics removal from pulping effluents was partly metabolism and partly metabolic conversion of colored and chlorinated molecules to non-colored and non-chlorinated molecules. Adsorption onto algal biomass was not so effective.