Phase separation of a surfactant-loaded solution happens beyond a certain critical thermodynamic state (known as the cloud point), separating the hydrophobic-rich phase in a nonpolar microenvironment from the aqueous supernatant. The dye molecules are bounded to the surfactant and subsequently separated by changing the environmental factor (temperature is commonly altered in cloud point extraction) beyond the cloud point. This is a popular extraction method in bioseparations but is also applicable for purification of dye solution. The chapter discusses the effect of the various operating conditions and different surfactants on extracting clear water from the dye solution with this technology.