An isolated bacterium from a textile disposal site, Pseudomonas sp. SUK1, has the ability to decolorize the reactive textile dyes and methyl orange. This bacterium showed the potential to decolorize the textile dye Reactive Blue 59 at a high concentration (5 g/L(-1)), which is frequently used in the textile industry of Solapur, India. Induction in the activities of lignin peroxidase, azoreductase, and dichlorophenol indophenol reductase was observed during the decolorization of Methyl Orange and Reactive Blue 59. Methyl Orange (as model azo dye) was used to understand the mechanism of biodegradation by Pseudomonas sp. SUK1. The final product was identified as 1,4-benzenediamine, N, N-dimethyl by gas chromatography-mass spectroscopy. Microbial and phytotoxicity studies revealed the nontoxic nature of the products of Reactive Blue 59.