The textile effluent has an unfavorable effect on the waterbodies as well as on the human health due tothe poor penetration of light by increased turbidity and higher oxygen demands. Therefore, the treatmentof dye-polluted wastewater is gaining an urgent attention. This review emphasizes on the sate-of-the-arttechnologies that have been developed for treating dye-polluted wastewater, including chemical, physical,and biological techniques alongside their benefits, challenges, and upcoming prospects. The studyconcludes that the single process alone may not be appropriate for the treatment of a range of dyepollutedwastewaters and approaching the quality demands as these technologies requires more timeand are complex. Literature exhibiting a range of approaches for treating large volumes of effluents withoutproducing secondary pollutants are reviewed. Moreover, the ecological impact was among the mainconcern due to the loss of catalysts and the production of waste sludge. On the other hand, reusability andregeneration are the integrated strategies to deal with such limitations. This review also provides adetailed environmental and techno-economic analysis, life cycle assessment, and practical implications. Moreover, the key bottlenecks requiring a major consideration concerning the universal appreciation ofhybrid frameworks are emphasized.