In this study, seven different cyanobacteria (LS01-LS07) were isolated from paddy field water and among them, the isolate LS04 was able to grow well on municipal wastewater. The LS04 isolate was identified as Nostoc sp. (designated as Nostoc sp. LS04) based on 16S rRNA gene sequence analysis. Strain LS04 grew well in 75% wastewater and had the greatest nutrients removal efficiency (81.02-95.17%). Strain LS04 obtained the higher biomass (1.31 ± 0.08 g L-1) and productivity of 131.33 ± 8.08 mg L-1 d-1. The lipid content and productivity of LS04 were 14.85 ± 0.86% (dry cell weight) and 19.46 ± 0.05 mg L-1 d-1, respectively. The high proportion of C16-C18 fatty acids found in the lipids of LS04 indicated the high suitability for biodiesel production. In addition, Nostoc sp. LS04 cellular extracts were potentially used as a biostimulant for Lactuca sativa cultivation. The foliar application of 60% LS04 cellular extracts showed the maximum shoot length, root length, fresh biomass, dry biomass, Chl a, Chl b and carotenoids in lettuce plants compared to control plants. Similarly, 60% of LS04 cellular extracts treatment improved the concentrations of macro and micronutrients, and biochemical compounds in the leaves. Therefore, these results reveal that the Nostoc sp. LS04 is a promising candidate for the nutrients removal from wastewater and their biomass is a potential resource for biodiesel production and biostimulant for sustainable crop production.