In this study five soil samples were collected from different dye-industry locations. The bacterial micro flora from the five potential soil samples obtained were investigated for their dye-degrading activity. Out of 7 different bacterial isolates found in five soil samples, best dye-degrading activity was found in three isolates. Finally these three isolates were selected for further studies. An attempt was made to characterize the bacteria based on morphological and biochemical properties. This study demonstrates an efficient decolorization of dye by bacteria. The bacteria were able to decolorize dyes, which is very useful to degrade textile effluents. The analysis of degradation products by UV-Vis spectrophotometer showed formation ofnew and different products by bacteria, when incubated with dye for 72 hrs. Since the dye degradation process is enzyme dependent, the bacteria change the fate of metabolism to produce decolorized product. Out of the three bacterial strains showing good dye decolorization, the beststrain was selected and identified to be as Bacillus VITSSG5 by flow charts of Bergey's Manualof Determinative Bacteriology. This study has provided a lead that soil bacteria can be used for minimizing environmental contamination by dyes used by textile industries.