Laccases (benzenediol oxygen oxidoreductases, EC 1.10.3.2) are polyphenol oxidases (PPO) that catalyze the oxidation of various substituted phenolic compounds by using molecular oxygen as the electron acceptor. In the present study, Bacillus subtilis MTCC 2414 were employed for the production of laccase using guaiacol as a substrate under Submerged Fermentation (SmF) condition. Laccase was partially purified by salt precipitation method followed by dialysis. The synthetic dyes such as Orange 3R, Yellow GR and T-Blue were used for degradation studies using culture filtrate, free and immobilized laccases. The immobilized laccase obtained by entrapment method using sodium alginate was optimized and it exhibited maximum activity at pH 7 (321 U mLG 1 ) and temperature 35°C (317 U mLG 1 ). Similarly, free laccase was also optimized and the maximum activity was observed at pH 9 (309 U mLG 1 ) and temperature 35°C (339 U mLG 1 ). Surprisingly, Yellow GR dye was found to be highly degraded up to 81.72% by immobilized laccase when compared to free laccase (74.69% of T-Blue) and culture filtrate (72.16% of Orange 3R) respectively. The FTIR spectrum showed a spectrum peaks at 2110.12 c/m in control dye and degraded Yellow GR exposed peak at 3406.36 cmG 1 which represents C-N stretching of aromatic amine group in dyes. Therefore, high degradation ability of laccase from B. subtilis MTCC 2414 makes them attractive catalyst for biotechnological applications.