This study investigates the algal flora of seven forest springs in Basgal settlement of Ismayilli district (southern Greater Caucasus), emphasizing their ecological structure and bioindicator potential. Seasonal sampling was conducted during 2024 (May, July, September) in both planktonic and benthic habitats. Water temperature, pH, electrical conductivity and total dissolved solids were measured in situ, and algal samples were analyzed using light and electron microscopy. Taxonomic identification followed standard phycological keys and was verified via AlgaeBase. Water quality and organic pollution were evaluated using the Palmer Pollution Index and saprobity analysis. The mean temperature of the springs ranged from 7°C to 12°C, with pH values between 7.6 and 8.5, electrical conductivity from 162 to 322 µS/cm, and total dissolved solids from 105 to 209 mg/L, indicating neutral to slightly alkaline and moderately mineralized waters. A total of 25 taxa belonging to five divisionswere identified: Charophyta, Chlorophyta, Cyanobacteria, Euglenophyta and Heterokontophyta. Palmer Index values (10–22) and saprobic assessments confirmed mostly oligosaprobic to β-mesosaprobic conditions. The results show that algal diversity and distribution in Basgal forest springs are closely linked to hydrological regime and forest vegetation, reflecting high ecological stability. These findings highlight the importance of algal monitoring for assessing and conserving freshwater ecosystems in mountainous forests of Azerbaijan.