Synthetic organic dyes are essential in satisfying the ever-growing demand, in terms of quality, variety and speed for coloration of a large number of substances. Due to the toxic nature, these materials present certain hazards and environmental problems. Toxicity of dyes varies with their structure. In this paper, a report is provided regarding a new Bacillus sp. Which decolorizes one of the triphenylmethane dyes, Crystal Violet, very efficiently? Efforts were made to assess the toxicity of Crystal Violet and its decolorized product through microbiological means. The test organisms used were various strains of Escherichia coli, Saccharomyces cerevisiae and Schizosaccharomyces pombe. Toxicity was measured in terms of inhibition of growth of test organisms. Various parameters like lag period, maximum cell mass concentration, specific growth rate (m) and inhibitive ability (n) were determined for the assessment of toxicity. In the presence of Crystal Violet (5 mg/ml), the specific growth rate (m) for E. coli DHSa, S. cerevisiae BJS418 and S. pombe ABP20 decreased from 1.25, 0.229 and 0.262 h-1 to 0.125, 0.125 and 0.044 h-1, respectively. The specific growth rates did not decrease in the presence of treated dye. The inhibitive ability of Crystal Violet was maximum (2.188) with S. cerevisiae BJS418, while it was minimum (0.688)for E. coli DHSa. Based on the results of the above parameters, it was found that Crystal Violet is toxic to all the organisms tested but when decolorized by Bacillus sp., it was found to be non-toxic.