The bioaccumulation of chromium from retan chrome liquor by Spirulina fusiformis was investigated under laboratory as well as field conditions. At the optimal conditions, metal ion uptake increased with initial metal ion concentration up to 300mg/l. The effect on various physico-chemical parameters like total solids (TS), total dissolved solids (TDS), total suspended solids (TSS), chlorides, sulphates, phenols, biochemical oxygen demand (BOD) and chemical oxygen demand (COD) and biochemical studies related to biomass, chlorophyll-a and protein were also carried out. The present study indicates that S. fusiformis is very effective in removal of chromium (93-99%) besides removing other toxicants from retan chrome liquor. The sodium dodecyl sulphate-polyacrylamide gel electrophoresis (SDS-PAGE) and FTIR studies indicate the interaction/complexation between Cr and alga. The mechanism involved in bioaccumulation of chromium is also discussed. The process when upgraded can be applied for detoxification of tannery effluents.