Water is a precious natural resource without which the existence of life is not possible. Increasing environmental contamination from industrial effluent is a matter of great worry. Many industries use dyes to color their products, especially the textile industry. Color is apparent even at 1 ppm; hence, their presence is unwanted and must be excluded from the wastewater prior to its release in the environment. Several techniques are available for the removal of dyes from effluent like adsorption, flocculation-coagulation, membrane separation, ozone oxidation, biological treatments, etc. Novel technology is required for the elimination of dyes from effluent that must be modest, profitable, and environment friendly. It is based on the principle that a solute can distribute itself in two partially miscible solvents (distribution law). The application of solvent extraction for removing dyes from textile effluent by the use of various types of surfactants has been studied in the present work. Solvent extraction using reverse micelles for the extraction of dyes is a novel, best, and most promising technique. It is an easy, inexpensive, green, as well as, eco-friendly method.