The fast growing textile industries have driven the economic growth in Malaysia. However, textile industries generate a large amount of textile effluent that contains dye compounds and other chemical substances. These substances are mutagenic and carcinogenic which bring negative effect to aquatic ecosystem and cause water and soil pollutions. These dye compounds have long half-life' which persists in the environment for long period. This causes adverse impact on the environment. The main purpose of this project is to determine the optimum condition for decolourisation of Reactive Orange 16 by locally isolated dye degrading microbe, UMKDG-1. All the decolourisation assay was carried out in batch using 0.10%, (w/v) Reactive Orange 16, pH 8 and incubated at 30°C under static condition. Decolourisation efficiency of Reactive Orange 16 was determined on the effects of pH (6 to 9), temperature (30°C and 37°C), oxygen level (static and agitated, 150rpm) and dye concentration (0.01%, 0.10% and 1.00%, w/v). It was found that higher decolourisation rate was recorded on each batch of decolourisation assay under different parameter which are pH 9 (66.71%), temperature 37°C (68.59%), static condition (69.04%) and 0.01% (wlv) Reactive Orange 16 (90.05%). The result of UV-Vis spectrum revealed that significant decreased in intensity of peak at 492nm was observed. This indicated that the decolourisation was occurred. However, unsuitable FTIR analysis method was used which resulted in only detection of water leads to inaccurate determination of dye degradation.