This study focused on the isolation of laccase enzyme from the fungus Pleurotus ostreatus and its application in the biodegradation of various pollutants present in textile industrial effluent, including chemicals, ions, salts, heavy metals, brittle metals, total suspended solids, total dissolved solids, chemical oxygen demand, biological oxygen demand, minerals, total hardness, total alkalinity, turbidity, electrical conductivity, and dyes. Textile industrial effluent poses a significant threat to the environment, contaminating water bodies and posing risks to human, animal, and plant life. This study employed an economical and ecofriendly biological approach for wastewater treatment, distinguishing it from traditional physical and chemical methods. The optimum temperature of laccase is found to be 30 degree Celsius and pH is 3. Enzyme activity of laccase is 7.25 U/ml. This fugal laccase decolorizes textile Industrial dye effluent containing various dyes, such as Turquoise VG, Black B, Yellow R, Methyl red, Trypan blue, and Acid Orange 7. Laccase depicts maximum decolorization efficacy on Black B dye. Similarly, Laccase from P.ostreatus shows higher decolorization efficacy when compared to other fungal laccase. Additionally, the study assessed the biodegradation of various wastewater quality parameters, including physical and chemical parameters like toxic heavy metals and ions. This research of isolation, characterization, and utilizing laccase from P. ostreatus for the bioremediation of textile industrial effluent wastewater containing dyes, toxic chemicals, ions and metals is effective, economical and ecofriendly.