Synthetic dyes are integral part of many industrial products. The effluents generated from textile dyeing units create major environmental problems and issues both in public and textile units. Industrial wastewater treatment is one of the major problems in the present scenario. Though, the physical and chemical methods offer some solutions to the problems, it is not affordable by the unit operators. Biological degradation is recognized as the most effective method for degrading the dye present in the waste. Research over a period of two decades had provided insight into the various aspects of biological degradation of dyes. It is observed that the white rot fungi have a non-specific enzyme system, which oxidizes the recalcitrant dyes. Detailed and extensive studies have been made and process developed for treatment of dye containing wastewaters by white rot fungi and their enzyme systems. An attempt is made to summarize the detailed research contributions on these lines.