The rheological and filtration performance of drilling fluids greatly depends on the additives used. To address the negative impact on the drilling fluid performance stemming from electrolyte contamination, a sustainable sodium alginate (SA) biopolymer was employed as an additive in water-based drilling fluids to overcome the performance deterioration caused by the polyelectrolyte effect under salt contamination. The results demonstrated that SA performs better than sodium carboxymethyl cellulose (Na-CMC) and polyanionic cellulose (PAC-LV), the widely used drilling fluid additives. Although exposed to highly concentrated salt contamination, the addition of SA can mitigate viscosity variation and maintain a lower filtration volume of a base fluid (BF), whereas an advanced variation in CMC/BF and PAC/BF was observed. The possible rheology and filtration mechanism of SA under highly concentrated salt contamination were investigated through zeta potential, particle size distribution, and scanning electron microscopy (SEM). The results revealed that the anchoring groups on the SA molecular chain enable them to strongly adsorb on the negatively charged bentonite surface via hydrogen and ionic bond interactions, leading to a significant improvement in both rheological and filtration performance. Therefore, SA with excellent salt tolerance and sustainability confers practical applicability that could extend to the preparation of saltwater-based and other inhibitive drilling fluids.