Textile dye-contaminated wastewater poses significant threats to the environment, biological diversity, and human health. While physical and chemical methods have been widely employed to mitigate dye pollution, these approaches suffer from inherent drawbacks and limitations, including high operational costs, generation of secondary hazardous by-products, and substantial energy requirements. Biological methods, such as those utilizing microorganisms and enzymes, present eco-friendly alternatives; however, challenges related to low efficiency, sensitivity to environmental variability, and slow degradation rates hinder their large-scale application. Recent advances in green nanotechnology offer promising solutions using eco-friendly nanoparticles for dye detoxification. Nevertheless, scalability, stability, and economic feasibility issues continue to impede their widespread adoption. Future advancements in nanoparticle synthesis, particularly through the integration of transgenic microorganisms, are anticipated to enhance the efficiency and sustainability of dye elimination processes.