The potential of commonly available green algae belonging to Spirogyra species was investigated as viable biomaterials for biological treatment of simulated synthetic azo dye (Reactive Yellow 22) effluents. The results obtained from the batch experiments revealed the ability of the algal species in removing the dye colour and was dependent both on the dye concentration and algal biomass. Maximum dye colour removal was observed on the third day for all the system conditions. Monitoring of ORP values helped to understand the overlying biochemical mechanism of algal-dye system. Based upon the results, the dye-algal treatment mechanism was attributed to biosorption (sorption of dye molecules over the surface of algal cells), bioconversion (diffusion of dye molecules into the algal cells and subsequent conversion) and biocoagulation (coagulation of dye molecules present in the aqueous phase onto the biopolymers released as metabolic intermediates during metabolic conversion of dye and subsequent settlement).