The dairy industry, notorious by generating wastewater rich in organic and nitrogenous content, necessitates sustainable recycling solutions. Biological treatment emerges as a cost-effective and chemical-free alternative. This study delves into the potential of microbial consortium, a microbial consortium, for recycling dairy effluent, aiming at water reclamation and environmental sustainability. Effluent samples from Madurai's Dairy Industry underwent microbial consortium treatment in a recycling prototype, with treatment efficacy assessed through physicochemical parameters and contaminant removal efficiency.Guided by a biodegradability index of 4.51, the study showcased EM's impact, revealing a notable decrease in pH levels, fostering an alkaline environment (2.35 ± 0.06 ppt). Dissolved oxygen increased significantly to 4.50 ppm, indicating improved aerobic conditions. EM treatment led to substantial reductions in calcium (53 %), magnesium (95 %), nitrogen (22 %), sulfate (79 %), phosphate (86 %), BOD (78 %), and COD (82 %). In contrast, dairy effluent treated without microbial consortium during the sludge activation process exhibited negligible water quality improvement.These findings underscore microbial consortium efficacy in advancing biological treatment of dairy effluent, demonstrating a significant reduction in contaminants and showcasing its potential for sustainable water reclamation. Improved alkalinity, dissolved oxygen, and nutrient content further signify positive impacts on ecosystem health. Microbial consortium emerges as a promising avenue for recycling dairy effluent, offering an economically viable and environmentally friendly solution. The study emphasizes the crucial role of microbial treatments in achieving efficient water reclamation, contributing to a cleaner and sustainable environment. Future research and broader implementation of microbial consortium in dairy industry wastewater management are recommended for enhanced environmental benefits.