The diazo reactive dye Navy blue HE2R (50 mg/L) was decolorized up to 91.2% within 48 h at static condition by the Exiguobacterium sp. isolated from the dyestuff contaminated soil, collected from the textile industrial area Solapur, India. It showed ability to decolorize seven different reactive textile dyes. Maximum decolorization was observed at $30^{circ}C$ and pH 7. The presence and significant increase in the activity of enzymes lignin peroxidase, laccase, and azoreductase indicated prominent role of these enzymes in the decolorization of Navy blue HE2R. The degradation metabolites were analyzed by UV-Vis spectroscopy, TLC, HPLC, and FTIR spectroscopy. A possible pathway for biodegradation of this diazo reactive dye was proposed with the help of GC-MS analysis. The phytotoxicity studies confirmed the environmentally safe nature of degradation products.