This study looks at using partially purified peroxidase extracted from peels of sweet lime (Citrus limetta) for decolorizing textile industry effluent. The ideal pH and thermal conditions of the enzyme were 7 and 35ºC. The K_m and V_max for guaiacol were 0.66 mM and 6666 μmol/mL/min, respectively. We found that sweet lime peroxidase was very effective in decolorizing textile industry effluent. Almost complete decolorization (>99 %) of effluent was attained at a pH of 5.0, temperature of 55ºC, H₂O₂ concentration of 2 mM, and enzyme dose of 40 U/mL within 60 minutes of incubation. The effluent was also analysed in terms of physicochemical parameters before and after treatment with sweet lime peroxidase. The reduction in toxicity after the enzymatic treatment was evidenced by chemical oxygen demand (COD) and total suspended solids (TSS) values.