Catalytic thermal treatment (thermolysis) accompanied with coagulation was used for the removal of COD and color of composite wastewater from a cotton textile mill. CuSO4, FeSO4, FeCl3, CuO, ZnO and PAC were used as catalytic agents during thermolysis. Homogeneous copper sulphate at a mass loading of 6 kg/m3 was found to be the most active. Similarly during coagulation aluminum potassium sulphate [KAl(SO4)(2).16H2O] at a coagulant concentration of 5 kg/m3 was found to be the best among the other coagulants tested, namely, commercial alum, FeSO4, FeCl3 and PAC. During thermolysis, a reduction in COD and color of composite wastewater of about 77.9 and 92.85%, respectively, was observed at pH 12. Coagulation of fresh composite waste using aluminum potassium sulphate resulted in 88.62% COD reduction and 95.4% color reduction at pH 8. Coagulation of the supernatant obtained after treatment by catalytic thermolysis resulted in overall reduction of 97.3% COD and close to 100% color reductions at pH 8 at a lesser coagulant concentration of 3 kg/m3. The results reveal that the application of coagulation after thermolysis is most effective in removing nearly 100% of COD and color at a lower dose of coagulant. The sludge thus produced would contain lower inorganic mass coagulant and can be used as a solid fuel with high calorific value of about 16 MJ/kg, close to that of Indian coal.