In this article an effort has been made to review literature based on the role of peroxidases in the treatment and decolorization of a wide spectrum aromatic dyes from polluted water. Peroxidases can catalyze degradation/transformation of aromatic dyes either by precipitation or by opening the aromatic ring structure. Peroxidases from plant sources; horseradish, turnip, tomato, soybean, bitter gourd, white radish and Saccharum uvarum and microbial sources; lignin peroxidases, manganese peroxidases, vanadium haloperoxidases, versatile peroxidases, dye decolorizing peroxidases have been employed for the remediation of commercial dyes. Soluble and immobilized peroxidases have been successfully exploited in batch as well as in continuous processes for the treatment of synthetic dyes with complex aromatic molecular structures present in industrial effluents at large scale. However, recalcitrant dyes were also decolorized by the action of peroxidases in the presence of redox mediators.