This study introduces an innovative approach, harnessing photobioreactors (PBRs) as algae windows to optimize energy efficiency and environmental protection in building design. The integration of microalgae cultivation systems into windows presents a promising avenue for multifaceted benefits, encompassing energy savings, improved indoor daylight levels, hot water production, and carbon sequestration. This research work presents a comprehensive exploration of this cutting-edge concept by employing simulations and analyses. It delves into various facets, including energy performance, cooling loads, daylight distribution, and hot water generation. The model room equipped with algae windows demonstrates substantial reductions in cooling energy consumption due to the shading effect of the algae. The daylight analysis underscores how algae windows can effectively illuminate spaces while minimizing the need for artificial lighting. Furthermore, the study reveals the potential for these windows to harness solar energy for hot water production, offering a dual-purpose solution. Despite the promise, this work acknowledges the existing challenges associated with technology adoption, encompassing technical, economic, and regulatory barriers. It underscores the critical role of governments in promoting favorable regulations, incentivizing investments, and raising public awareness to accelerate the uptake of algae windows. Algae windows present a holistic solution by simultaneously mitigating energy consumption, reducing carbon emissions, and improving indoor environments. This research serves as a foundation for future studies, encouraging further investigations into the viability and scalability of algae-integrated building systems.