The textile sector remains a key driver of economic expansion worldwide having considerable environmental issues stemming from the extensive use of synthetic dyes. These dyes are often enduring, and hazardous and exacerbate water contamination by causing more water spills. This chapter examines the viability of biodegradable textile dyes as a sustainable option. We describe the attributes of biodegradable dyes their origin (natural and microbial), and current progress in their synthesis and use. Additionally, we examine both the ecological and economic advantages of using biodegradable dyes while recognizing the associated problems and constraints. This chapter intends to provide essential insights for scientists, researchers, and industry experts pursuing green practices in the textile sector.