The extensive use of synthetic dyes in textile industry particularly anthraquinone and azo compounds has become a significant environmental concern. These dyes often contain heavy metals which results in increased Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD), and water toxicity of textile effluents. While conventional physical and chemical treatment methods exist, their high energy consumption and operational costs necessitate alternative solutions. Microbial bioremediation has emerged as a promising strategy for detoxifying and degrading these harmful compounds. Various microorganisms, including specific bacteria, fungi, and algae, can effectively degrade dyes through enzymes such as azoreductase, peroxidase, and laccase. Recent technological advances have enhanced bioremediation efficiency through the integration of microbial biosorbents, nanotechnology, genetic engineering, and specialized bioreactors. This chapter examines the recent biological approaches for dye contamination reduction and addresses the technical challenges in scaling these solutions for industrial applications.