The presence of dye in wastewater causes substantial threats to the environment, and has negative impacts not only on human health but also on the health of other organisms that are part of the ecosystem. Because of the increase in textile manufacturing, the inhabitants of the area, along with other species, are subjected to the potentially hazardous consequences of wastewater discharge from textile and industrial manufacturing. Different types of dyes emanating from textile wastewater have adverse effects on the aquatic environment. Various methods including physical, chemical, and biological strategies are applied in order to reduce the amount of dye pollution in the environment. The development of economical, ecologically acceptable, and efficient strategies for treating dye-containing wastewater is necessary. It has been shown that microbial communities have significant potential for the remediation of hazardous dyes in an environmentally friendly manner. In order to improve the efficacy of dye remediation, numerous cutting-edge strategies, including those based on nanotechnology, microbial biosorbents, bioreactor technology, microbial fuel cells, and genetic engineering, have been utilized. This article addresses the latest developments in physical, chemical, eco-friendly biological and advanced strategies for the efficient mitigation of dye pollution in the environment, along with the related challenges.