In the present study, dye decolorizing bacteria were isolated from water and soil samples, collected from textile industries in Jodhpur province, India. Two bacterial species namely, <i>Bacillus pumilis</i> and <i>Paenibacillus thiaminolyticus</i> were screened and identified based on biochemical characterization. The degradation efficiency of these two microorganisms was compared through optimization of pH, incubation time, initial dye concentration and inoculum size. <i>B. pumilis</i> and <i>P. thiominolyticus</i> were able to degrade 61% and 67% Red HE3B, 81% and 75% Orange F2R, 49.7% and 44.2% Yellow ME4GL and 61.6% and 59.5% Blue RC CT dyes of 800mg/l concentration respectively. The optimum pH and time were found to be 8 within 24 hours. The FT-IR analysis confirmed that microorganisms were able to degrade toxic azo dyes into a non-toxic product as proved through structural modifications to analyze chemical functions in materials by detecting the vibrations that characterize chemical bonds. It is based on the absorption of infrared radiation by the microbial product. Therefore, <i>Bacillus pumilis</i> and <i>Paenibacillus thiaminolyticus</i> are a promising tool for decolorization of dyes due to its potential to effectively decolorize higher azo dye concentrations (10-800 mg/L) and can be exploited for bioremediation.