The main objective of the present study was treatment of dye waste by coagulation and flocculation with alum and clay to achieve maximum removal efficiency of color and COD. Textile mill dye waste was treated using Coagulant (Alum) with weighting agent (Bentonite clay). Wastewater samples were collected from Riba Textiles, Haryana, India. Wastewater was highly alkaline, high in suspended solids and color. The parameters of importance were color and Chemical oxygen demand (COD). Optimum coagulant dose and optimum pH were determined by Jar test. Coagulant dose coupled with clay dose were added to wastewater for better coagulation and flocculation to obtain maximum removal efficiency of color and COD. The results showed that physico-chemical method of coagulation & flocculation using alum with clay produced 92% COD removal and 68% color removal which was almost equivalent to what was achieved in the treatment plant in the industry using one stage physico- chemical and two stage biological treatment. This resulted in reducing the running cost of effluent treatment plant by simplifying the treatment scheme as well as saving costly coagulant to a great extent.