This study investigates the capacity of the ligninolytic bacterium Bacillus cereus SVN1 to degrade methylene blue dye while generating electricity in a microbial fuel cell (MFC). Screening techniques confirmed Bacillus cereus SVN1, demonstrating its ability to decolourize methylene blue and produce lignin peroxidase enzyme. Quantitative analysis revealed that the optimal dye concentration for MFC operation was 40 mg/L, with a decolourization rate of 61.21%. During MFC operation, the highest power density achieved was 0.1455 W/m2 at the 30th hour, with a 52% decolourization rate by the 48th hour. UV-vis spectrophotometer analysis confirmed dye degradation by SVN1. Despite slightly lower decolourization rates compared to other studies, SVN1 ability to degrade methylene blue while generating electricity underscores its potential for sustainable wastewater treatment and bioenergy production. These findings shed light on the simultaneous processes of dye degradation and electricity generation in MFCs using ligninolytic bacteria, advancing our understanding of their environmental remediation capabilities.