Background: Synthetic dyes find usage in multiple industries such as paper, textile, food, plastic and pharmaceutical. On their release in industrial effluent and subsequently into the environment, the majority of them affect aquatic and surrounding non-aquatic life because of toxic properties. Therefore, their proper discharge and economical treatment is a matter of great concern. In this context, many enzymes have been reported to efficiently perform dye degradation. Peroxidase is one such enzyme, which causes dye degradation either by precipitation of chemical structure of aromatic dyes or by opening up their aromatic ring structure. The current paper focuses on the major impacts of industrial dyes on the surrounding environment and on exploring the use of bacterial peroxidases as alternative dye degradation compounds. Methods: A bacterial peroxidase was extracted from Bacillus sp. BTS-P5, a strain isolated from a soil sample. Various process parameters were optimized for optimal degradation of ten major industrially important dyes [Bismark Brown R (BBR), Bromophenol Blue (BB), Rhodamine B (RB), Bismark Brown Y (BBY), Direct Violet 21 (DV), Basic Fuchsin (BF), Coomassie Brilliant Blue (CBBG), Congo Red (CR), Direct Black 154 (DB) and Methylene Blue (MB)] by bacterial peroxidase. Results: Basic Fuchsin showed maximum degradation of about 95% by bacterial peroxidase while the Bromophenol Blue was least degraded (29%). Out of the ten dyes, eight dyes showed degradation over 50%. Conclusion: The findings of this research showed that bacterial peroxidase was efficient in dye degradation and hence it has potential as a potent bio-degrader of industrial dyes effluent and wastewater management.