Synthetic dyes released by various industries pose a real concern to the environmental safety. Existing physico-chemical methods of dye removal from effluents suffer from severe constraints like low efficiency, high operational cost and large amount of sludge generation. Over the last two decades, considerable work has been done with the goal of using microorganisms as bioremediation agents in the treatment of dye containing wastewaters. Microorganisms are capable of removing dyes due to their high metabolic potential. Compared to bacteria and filamentous fungi, yeasts exhibit attractive features. In recent years, there has been intensive research on dye removal by yeast species. It is becoming a promising alternative to replace or supplement existing treatment processes. The present article provides a selective overview of past achievements and present scenario of using yeast for the removal of synthetic dyes from water environment. Updated information on the mechanism of dye removal by various yeast genera via processes like biosorption, bioaccumulation and biodegradation are discussed.