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Laccases are muticopper oxidases, found in many plants, fungi and microorganisms. It was found that laccase plays a crucial role in the formation of lignin by promoting the oxidative coupling of monolignols, a family of naturally occurring phenols. The isolation and identification of laccase from white rot fungi plays a vital role in exploiting its environmental and biotechnological application. The increased use of a wide varieties of synthetic dyes in different industries has raised a hazardous environmental aware. Researchers found that 17-20% of fresh water pollutions are caused by the presence of these dyes. Dyes are the most difficult constituents to remove by conventional waste water treatment, and are mainly removed by physical and chemical methods, which are expensive. Hence the biological processes become the most prominent technology for dye decolourisation. Laccase based decolourization treatment are highly advantageous to bioremediation technologies. This paper reviews the ability of laccase to decolourize dyes in different industries.