Pollution by the release of dye containing wastewater has been alarming worldwide. Biodegradation of reactive green dye and textile effluent by Candida sp. VITJASS was investigated in dynamic condition. Paddy rhizosphere yeast Candida sp. VITJASS showed 84% removal of reactive green dye and 75% reduction in ADMI of textile effluent with a considerable synthesis of oxido-reductase enzymes. The degraded products were analyzed by UV-vis spectroscopy, HPLC and FTIR, which indicated the biotransformation of dye into non-toxic metabolites. GC-MS analysis revealed the formation of Diphenylmethane as potential end product. Phytotoxicity assessment on Phaseolus mungo seeds suggested the non- toxic nature of extracted metabolite. Toxicity studies on zebrafish revealed disturbed cellular integrity and disruption of tissues with crude dye supplementation. However, the degraded metabolites by VITJASS had an intact lumen morphology in the fishes. Thus, the present study depicts the augmentation of yeast strain to be efficacious and promising for degradation of dye with the synthesis of non-toxic metabolites. © 2018 Elsevier Ltd.