Abstract: According to the European Environment Agency, the textile industry is responsible for 20% of global water pollution due to dyeing and finishing products, thus facing severe environmental challenges. It is essential to design more biocompatible and sustainable treatment processes capable of removing dyes from industrial wastewater to fight this environmental hazard. Chemical industries must change traditional chemical-based concepts to more environmentally friendly and greener processes to remove pollutants, including dyes. Enzymatic bioremediation is a smart tool and a promising alternative for environmental pollutant degradation. The use of enzymes in dye decolourization makes the process a green and clean alternative to conventional chemical treatments. Moreover, enzymemediated biocatalysis decreases the formation of toxic by-products compared to chemical reactions. The most used enzyme for the decolourization of dyes is laccase. Laccase is a multicopper oxidase found in diverse organisms such as fungi. It promotes the oxidation of phenolic compounds and has a wide range of substrate specificity, making it a promising enzyme for removing different dyes used by the textile industry, including recalcitrant aromatic dyes. The present article gives a comprehensive revision of textile dye decolourization, its types, recent developments in laccase-mediated dye bioremediation technologies, the mechanism of biocatalysis, and their limitations and challenges. Emphasis on the chemical pathways of laccase reaction mechanisms for dye bioremediation processes is also provided. In addition, a brief overview of textile industries and the respective traditional treatment processes for textile wastewater is presented.