Rapid industrialization, along with the development of textile and other associated industries, has led to the discharge of dyes, heavy metals, and other carcinogenic and environmentally harmful substances into water bodies. The volume of wastewater containing dyes is increasing day by day. Raised levels of dyes, along with other contaminants, in wastewater are becoming a global concern, as these affect human health as well as aquatic flora and fauna. Bioremediation is one of the effective, sustainable, eco-friendly and cost-effective approaches for the treatment of wastewater containing dyes. This paper presents a state-of-the-art review of bioremediation techniques used for the removal of dyes from textile wastewater. The usage of various strains, e.g., bacteria, algae, yeast, enzymes, fungi, etc., is discussed in detail. Bioremediation of dyes using bioreactors and microbial fuel cells is also explored in this study.