Aim The aim of present work was to explore the potential of Chlorella sp. SRD3 extracts for antioxidant and antibacterial activity along with the evaluation of minimum inhibitory concentration (MIC) and haemolytic activity to detect RBC cell damage. Methods and Results Screening and isolation of microalgae was performed using bold basal medium under normal illuminance (at 27 degrees C) and microscopic observation. Growth of the microalgae was optimized using a different medium and light source. The isolated microalgae incubated under fluorescent light when cultured in F/2 medium showed a highest dry biomass yield of 3 center dot 77 +/- 0 center dot 1 g l(-1), when compared to the growth under direct sunlight (2 center dot 74 +/- 0 center dot 07 g dwt l(-1)). The quantitative analysis of extracts revealed higher phenols, flavonoids and proanthocyanidins in ethyl acetate and hexane extracts followed by methanol. The antioxidant activity of extracts was tested against 1-diphenyl-2-picrylhydrazyl and ABTS radical, its reducing power assay was performed. From antibacterial activity, the two extracts showed better inhibition against Gram-negative bacteria. Also, they resulted in very low MIC values with effective activity against pathogens. In haemolytic activity, no haemolysis occurred, when the concentration (mu g ml(-1)) was below 64 for methanol and 32 for ethyl acetate extract. In addition, Chlorella sp. extracts were characterized by GC-MS analysis to detect the major compounds. Conclusion The polar extracts revealed satisfactory results against the clinical isolates and the compounds responsible were reflected in the GC-MS spectrum. Significance and Impact of the Study The present study revealed significant biological potentials of the green alga, Chlorella sp. such as antioxidant, antibacterial and hemolytic activities. Therefore, this vital source might serve as a cost-effective, alternative choice to the pharmaceutical and food industries in the near future.