The potential of recently isolated bacteria Paenibacillus larvae for the effective decolorization of Indigo carmine was evaluated. The effects of operational parameters (temperature, pH, dye concentration, shaking/non shaking) were tested. Maximum extent of decolorization was observed when the medium was incorporated with 10 g/l of yeast extract and peptone. Decolorization was strongly inhibited at non-shaken conditions as well as incorporation of inorganic sources (sodium nitrite and ammonium chloride) in the medium. Maximum decolorization was observed at 30 degrees C (100%) and 40 degrees C (92%) at 8 h of incubation. The LC-MS and NMR analysis confirms the oxidation of Indigo carmine . The primary degradation products were found to be Isatin sulfonic acid and anthranilicacid.