The process of microbial mineral precipitation has proven to be highly effective in addressing a wide range of pollutants in different environments. The objective of this study is to utilize the mineralization abilities of microbial strains found in the Noyyal River basin, which is home to a significant textile center in India, in order to both remove the color from reactive blue 4 and promote biomineralization. Promising results were obtained from the microbial isolates Streptomyces sp., Rhodococcus ruber, and Bacillus sp., and their consortium which demonstrated the ability to induce biomineralization and decolorize reactive blue 4. Characterization of the obtained biominerals through X-ray diffraction and FT-IR analysis showed the presence of well-crystallized polymorphs of calcium carbonate, along with other organic compounds. SEM-EDX analysis of biominerals formed during biomineralization-assisted decolourization of RB4 revealed distinct morphologies and elemental composition of the biominerals produced by microbial interactions with dye molecules. Further, to assess the safety and efficacy of these biominerals, zebrafish embryo toxicity tests were conducted by comparing biominerals produced during dye decolourization with the pure reactive blue 4 dye. Zebrafish embryos treated with biominerals exhibited normal developmental patterns, whereas those exposed to reactive blue 4 displayed mortality and abnormal hatching rates. The heart rates of the Zebrafish embryos were normal for controls and biomineral groups, but lower for RB4-exposed embryos. In conclusion, this study underscores the potential of biomineralization in remediating dye-contaminated wastewater, offering circular solutions for waste reduction and resource utilization.