Aqueous two-phase systems (ATPSs) as alternatives to traditional liquid–liquid extraction systems have been used intensively in recent years. In this work, a new ATPS composed of a piperazinium-based surface-active ionic liquid (SAIL), 1-(2-hydroxyethyl)piperazinium laurate ([HEP][C11CO2]), and a commercial cationic surfactant, dodecyldimethylbenzylammonium chloride (DDBAC) was prepared. The phase diagram for the ternary system DDBAC + [HEP][C11CO2] + H2O was determined, and the effects of composition and temperature on phase behaviors and properties were investigated. Phase separation was found spontaneous and thermodynamically favored when the mass fraction of water (w3) exceeded 0.60, primarily due to the salting-out of the hydrophilic ions [HEP]+ and Cl− in the bottom phase. Micelles were observed in the top phase where high concentrations of the hydrophobic ions [DDBA]+ and [C11CO2]− were present. Increasing the water content at a fixed surfactant-to-SAIL molar ratio resulted in a decreased top phase volume, while the extraction efficiency (EE) and the distribution coefficient (D) were both increased for extractions of Basic Blue 7 and Allura Red AC. When w3 reached 0.96 and the initial concentration of dye was below 1 × 10−4 mol·L−1, the EE values exceeded 98 % with all the D values surpassing 100, indicating the promising potential for SAIL-ATPS applications.