The global manufacturing sector heavily relies on the textile industry, yet the widespread utilization of synthetic dyes within this sector has raised serious environmental apprehensions, notably regarding wastewater contamination. The release of untreated wastewater containing residual dyes poses a significant risk to both aquatic ecosystems and human well‐being. In reaction to this issue, considerable efforts have been made to develop efficient and sustainable methods for the removal of textile dyes from wastewater. This comprehensive review paper furnishes in‐depth literature information covering various aspects of dyes, including their classification, toxicity effects, and evaluation of recent advancements in dye removal technology, emphasizing their advantages, limitations, and future potential. Various strategies are covered, including physical, chemical, and biological methods. Physical techniques like adsorption, filtration, and membrane technologies are contrasted with chemical approaches such as coagulation, precipitation, and advanced oxidation processes. Biological methods include the utilization of micro‐organisms, fungi, and enzymes to break down or metabolize dye compounds. Key considerations in the critical analysis include the efficiency, cost‐effectiveness, and scalability of each method. This review focuses on enzyme breakdown (biological) and adsorption (physical) color removal procedures, which are currently considered the most effective. It also proposes the utilization of a composite adsorbent, anticipating enhanced efficiency and faster removal of dyes through this technique.