In this study, three species were isolated from Palm Oil Mill Effluent (POME). The feasibility of the microalgae as feedstock for biodiesel production was evaluated. The species were identified and characterized consisting of bimolecular analysis, determination of biomass content including lipid accumulation as well as fatty acid identification. Optimization of culture condition by combining nitrogen deficiency and rice husk (RH) extract addition as nutrient supply was performed to enhance lipid yield. Betha carotene content as co-product was also determined. Sequence analysis of 18 S rDNA gene revealed that the three species were Micractiniumspehime, Micractinium sp. CCAP211/92 and Mychonastesrotundus. Biomass productivity of the three strains based on the individual optimum growth rate and dry biomass weight were 57.22 mg/L d, 57.53 mg/L d and 59.98 mg/L d respectively. While lipid content of respective species under normal nutrient conditionwere9.96 ± 0.76 %, 26.65 ± 0.98 % and 27.67 ± 1.28%.Optimization for lipid accumulation was only performed to the two species with highest lipid content (Micractinium sp CCAP211/92 and Mychonastesrotundus) which reached lipid content up to 43.42 % and 37.92 % with lipid productivity of 20.9 mg/L d and 15.8 mg/L d respectively. Fatty Acid Methyl Ester (FAME) analysis showed that palmitic acid (C16:0) is the predominant fatty acid followed by oleic, linoleic and linolenic acids. Betha carotene identification demonstrated that Mychonastesrotundus has the highest β-carotene content among the three species tested with percentage of 0.77 % of dry cell weight (dwc). The significance of lipid accumulation with suitable lipid profile and the presence of β-carotene reveal that microalgae strains isolated from palm oil mill effluent (POME) have the potential as feedstock for bioproducts especially biodiesel.