Environmental Pollution is becoming a major threat around the world due to the release of toxic and hazardous substances. Anthropogenic influence of water resource is a global problem. The major pollutants such as dye stuffs from the textile industries affect the aquatic ecosystem. Due its toxicity it increases the Biological Oxygen Demand (BOD) and also depletes the oxygen in water. The conventional methods such as extraction, steam distillation, absorption, filtration etc., will have drawbacks of incomplete removal of dye stuffs. This article describes the use of enzymes as an alternative method for the treatment of such recalcitrant completely. It is the most effective method compared to conventional methods. Enzymes involved in this technique can be regenerated and is available for next catalytic cycle. This review concludes the current research based on the removal of dyes from the waste streams by enzymes such as lignin, peroxidise, manganese peroxidise and laccase. Enzymes reduces their adverse impact on the environment thereby making enzymatic wastewater treatment an ecologically sustainable technique.