Textile effluent is major pollutant released by textile industries. Large amount of azo dyes release from effluent and become a part of water body. Directly or indirectly humans are affected by these chemicals b/c they are mutagenic cause cancer. The aim of study is to identify the potential microorganisms which can degrade dyes and turn into harmless and to develop cost effective method for the treatment of textile effluent. Isolation and identification of dye degradation capability of microorganism. The dyes are mutagenic and teratogenic in nature so these microorganisms are environmental friendly which are used in degradation of textile dye. The bacterial species including are Bacillus subtilis, Staph.aureus, Aeromonas, Enterobacter, Halobacter, Proteus mirabilis, Salmonella typhi, E.coli, Klebsiella pneumoniae and Pseudomonas aeruginosa. The best degraded bacterial species are Bacillus subtilis, Staph.aureus, and Pseudomonas aeruginosa. Observed degradation of dye & textile effluent by microorganism in different pH and temp. Observed growth of seeds in effluent and degraded dye. We have performed biodegradation of textile azo dyes and its effect on seed germination and detection of laccase enzyme. In this experiment we use different microorganisms which degrade the azo textile dye. Pseudomonas and Bacillus play leading role in degradation of azo textile dye. We have performed BOD and we observed that BOD was decreased after treating with micro-organisms, so we conclude that BOD and COD can be used in future which can helpful as a gauge in treating the textile effluent. We have performed the phyto-toxicity of textile effluent. In this experiment we compare phyto toxicity of textile effluent with biodegraded textile effluent and we observed good seeds germination efficiency after treating with Bacillus. But Pseudomonas gave the phyto-toxic effect in seed germination. So we conclude that microorganisms can be used for treating textile effluent that will be desirable for the future growth of seeds.