The dyed fabrics from textile industries occupy a significant share in the global economy with a world-wide market. Conventional natural dyes were gradually substituted by synthetic dyes in the wake of burgeoning demand for coloured textiles. Textile dyes are of several types depending on the core chemical structure which determines the solubility, colour and dye class. Often, dyes require treatment with mordants to fix the colour to the fabric and develop different hues. The textile treated dye baths contain residual dye moieties, mordants as well as other chemicals from the overall textile dyeing and finishing processes. For such effluents, proper treatment is a mandate to alleviate dyes associated colour, chemical compounds and organics from the wastewaters prior to release into watercourses. The challenge of textile dye effluents to meet the regulatory limits becomes more problematic when the textile industries are dominated by the unorganised small/medium scale industries and unauthorised sectors. The present review details on the genesis of Indian textile industries, dye types, dyeing process and the impact of dye effluents on health and environment along with a case study. Besides, strategies to replace chemical dyes with natural equivalents and state-of-art textile dye effluent treatment techniques are elaborated. © 2020 Indian Institute of Chemical Engineers.