Colored effluents from the textile industry have led to severe environmental pollution, and this has emerged as a global issue. The feasibility of ligninolytic enzymes for the detoxification and degradation of textile wastewater was investigated. Ganoderma lucidum crude ligninolytic enzymes extract (MnP 717.7, LiP 576.3, and Laccase 323.2 IU/mL) was produced using solid-state culture using wheat bran as substrate. The biodegradation treatment efficiency was evaluated on the basis of degradation and detoxification of textile effluents. Standard bioassays were employed for mutagenicity, cytotoxicity and phytotoxicity evaluation before and after biodegradation. The degradation of Masood Textile, Kalash Textile, Khyber Textile and Sitara Textile effluents was achieved up to 87.29%, 80.17%, 77.31% and 69.04%, respectively. The biochemical oxygen demand, chemical oxygen demand, total suspended solids and total organic carbon were improved considerably as a result of biodegradation of textile effluents, which were beyond the permissible limits established by the National Environmental Quality Standards before treatment. The cytotoxicity (Allium cepa, hemolytic, Daphnia magna and brine shrimp), mutagenicity (Ames TA98 and TA100) and phytotoxicity (Triticum aestivum) tests revealed that biodegradation significantly (P < 0.05) detoxifies the toxic agents in wastewater. Results revealed that biodegradation could possibly be used for remediation of textile effluents. However, detoxification monitoring is crucial and should always be used to evaluate the bio-efficiency of a treatment technique.