The processes of biodegradation have widely used to remove hazardous material from aquatic and soil system is an environmental friendly tools. The present study describes biodegradation potential of a macroalgae Chara sp. and Scenedesmus obliquus against the fabric dyes used by dyer for dyeing cloths. The degradation monitored using UVvisible and FTIR spectroscopy techniques. The Chara extract has high potentiality towards the decolorisation and dye precipitation as compared to Scenedesmus obliquus extract and Chara immobilized beads treated dyes. Out of 6 tested dyes, Chara extract could precipitate more than 90% of dyes after 5th days of incubation. Maximum precipitation and decolorization 98.28% of FD2 dye occurred and it is relative low in FD5 (90.36%). On the basis of FTIR spectra, the Scenedesmus obliquus degraded more than 77.22 % of dyes after 5th days of incubation. Maximum degradation of FD2 dye occurred about 77.22% and lowest observed in FD3 about 38.12%. The Scenedesmus obliquus has more prospective for dye degradation as compared to Chara extract and Chara extract immobilized beads. The optimum pH and temperature for all the tested algal samples is 6.0 and 370C. Toxicity tests all pure dyes and degraded dyes reduced to maximum 31.25 % of FD2 and minimum 15 % of FD3 determined against E. coli. The present work gives insight for the uses of Chara sp. and Scenedesmus obliquus for the bioremediation of dye effluents to reduce water pollution.