In order to study the effect of environmental factors on the algae growth and competition, the author summarized overseas and domestic related researches in recent years. Most of the researches are about the influence of single factor on growth of algae. However, there is insufficient investment on the interaction of different factors and the competition between algae growth. This paper briefly introduced the classification of algae and the role they played in ecological system and focused on the influence which included temperature, illumination, nitrogen, phosphorus and pH on the growth and competition of algal. In the end, the author proposed key questions which were still needed to be studied in order to know more about the relationship between environment effects and growth and competition of algae. Therefore, people could better improve the community structure of algae and water ecological environment, and improve water primary productivity.