Textile industries discharge substantial quantities of harmful chemicals, including remnant dyes and other xenobiotic substances into the environment, resulting in the detrimental consequences such as toxicity, mutagenicity, and carcinogenicity. Although physicochemical techniques are often used for dye elimination, bioremediation with microorganisms presents a more sustainable and environmentally safe option. Physicochemical methods are high-cost and inefficient and generate significant quantities of toxic sludge, contributing to secondary environmental pollution. Numerous microorganisms, such as fungus, bacteria, and microalgae, have the capability to degrade textile dyes via their metabolic processes. The inexpensive price and enduring efficacy of biological remediation for industrial waste have led to a growing need for innovative biological solutions in industrial wastewater management. Biocatalysts offer an alternative for effluent treatment due to their absorption and degradation capabilities. Biocatalysts, as biological catalysts, can degrade various dyes, including many resistant azo dyes. The significant capacity of yeast to absorb dyes and heavy metals positions it as a viable candidate for the biodegradation of textile effluents. This chapter is intended to offer an overview of textile waste and its bioremediation, focusing on microbial and enzymatic treatments. This chapter addresses the contemporary bioremediation techniques capable of degrading and detoxifying textile dyes and effluents. This chapter discusses the prospects, challenges, and recommendations regarding textile effluent.