Generating renewable energy while sequestering CO2 using algae has recently attracted significant research attention, mostly directed towards biological methods such as systems biology, genetic engineering and bio-refining for optimizing algae strains. Other approaches focus on chemical screening to adjust culture conditions or culture media. We report for the first time the physiological changes of algal cells in response to a novel form of mechanical stimulation, or a pulsed wave at the frequency of 1.5MHz and the duty cycle of 20%. Most importantly, we studied how the pulsed wave can further increase algal oil production on top of existing biological and chemical methods. Two commonly used algal strains, fresh-water Chlorella vulgaris and seawater Tetraselmis chuii, were selected. Conventional Gravimetric measurements show that up to 20% increase for T. chuii at the intensity of 80 mW/cm2 and 10% increase for C. vulgaris in algal oil could be achieved after 8 days of stimulation at the intensity of 100 mW/cm2. Gas chromatography / mass spectrometry (GC/MS) shows that the fatty acid composition remains unchanged after pulsed-wave stimulation. Scanning electron microscope results also suggest that pulsed wave stimulation induces shear stress and thus increase algal oil production.