The textile industry generates significant volumes of wastewater that include toxic and cancer-causing dyes, presenting substantial risks to human health, aquatic ecosystems, and the overall environment. Conventional physicochemical techniques for dye removal usually have high costs and are environmentally harmful, underscoring the necessity for alternative biological approaches. However, enzyme-mediated decolorization, especially via oxidoreductases such as peroxidases, laccases, and azoreductases, provides an efficient remedy. These enzymes facilitate the breakdown or biotransformation of dyes under appropriate conditions, including specific pH, temperature, and the availability of co-substrates. This chapter explores the variability in enzyme effectiveness according to their category, origin, and target substrate, highlighting that peroxidases are especially proficient in degrading a wide variety of industrial dyes since they have their significant resilience to temperature and pH variations. Moreover, enzyme activity is affected by operational factors such as dye concentration, incubation duration, and enzyme immobilization. Immobilized enzymes exhibit superior degradation and decolorization efficacy relative to their soluble alternatives. This chapter also presents enzyme-based methods for the sustainable management of textile effluents.