The dye reactive yellow 15was degraded by Bacillus licheniformis bacterium optimally at pH 9, temperature at 37°C, 50 mg/l of dye concentration at 20% inoculums size. Glucose, NH4NO3 were found to be the best carbon and nitrogen sources. The extracellular enzyme from Bacillus licheniformis was studied for dye decolourization potential. Biodegradation was confirmed by analyzing the product using thin layer chromatography (TLC) and gas chromotograpy - mass spectrometry (GC-MS). GC-MS analysis revealed the formation of uric acid, 2-Methyl sulfonyl-5-dimethylaminomethyleneamino pyrimidine, diethyl phthalate and phenol as final metabolites formed by Bacillus licheniformis. Phytotoxicity test was accomplished in pearl millet to assess the toxicity of the untreated and microbially treated textile dye effluents. These results indicated that the high potential of Bacillus licheniformis to serve as an excellent biomass for the use in dye removal.