The considerable demand for dyes worldwide has triggered a surge in their production globally. The extensive application of dyes and inefficient dyeing processes has elevated the risk of environmental pollution. The effluents from dying industries contain toxic compounds that are dreadful to both the environment and living beings. Besides, conventional effluent treatment processes have proved ineffective in clearing the dye from the effluent. The sole way of tackling this problem would be by applying a more rational approach that would be sustainable and efficient. After a thorough study of the literature, we are convinced to say that cyanophyceae and algae could serve as one of the promising biodecolorizing agents substituting most other biosorbents used in conventional biological effluent treatment technology. To evidence this we compiled data from the literature, wherein, various algal biomasses capable of decolorizing dye effluents have been examined. This paper also gives comprehensive facts on the mechanism of decolorization, pretreatment, influencing factors, and toxicity of treated products.