The enormous amount of colored effluent release from dying industries into fresh and marine reservoirs, causing ecotoxicity and serious health problems. Pertaining to this, the current research emphasis on the decolorization and degradation treatment of Indigo carmine (IC). The decolorization of IC with endophytic Microbacteium zeae K5, isolated from the root of the Salix purpurea plant was studied. In a minimal salt medium with shaking, full dye decolorization (400 mg/L) was achieved within a 24 h incubation period. During dye degradation, the activities of enzymes such as laccase (12.02 U/g), manganese peroxidase (4.23 U/g), and quinone dehydrogenase (0.09 U/g) were also observed. The biodegradation of IC into isatin sulfonic acid and isatin was confirmed by UV–VIS spectrophotometry and GC-MS analysis of dye samples extracted with ethyl acetate. Finally, phytotoxicity studies revealed that the IC degraded metabolites toxicity was lower than that of the parent dye compound. The current study demonstrated isolate M. zeae K5 has ability to efficiently break down IC, indicating its potential for future bioremediation uses.