This investigation is aimed to reduce the pollution and ecotoxicological impact of the paper and pulp industry effluent by Rhodococcus sp. NCIM 2891. It was observed that the Rhodococcus sp. NCIM 2891, when grown in the presence of the effluent, there was a significant decrease in levels of biological oxygen demand (81.25%) 30 mg/L and chemical oxygen demand (53.23%) 363 mg/L as compared to untreated samples with 160 and 776 mg/L, respectively. Reduction in total dissolved solids could be observed (81%) along with reduction in heavy metal concentration. Further analysis of the degraded effluent compounds was carried out by atomic absorption spectroscopy. The eco-compatibility of the effluent and degraded product was checked in terms of their toxicity on Allium cepa, Acantopsis choirorhynchus, and different microorganisms. The degraded products obtained after biodegradation are found to be eco-compatible and non-toxic.Abbreviations: BOD, biological oxygen demand; COD, chemical oxygen demand; DNPH, 2,4-dinitrophenyl hydrazine; FW, fresh weight; MDA, malondialdehyde; NBT, nitro blue tetrazolium; ROS, reactive oxygen species; RRG, relative root growth; SOD, super oxide dismutase 456