The present research emphasizes on degradation of azo dyes from simulated textile wastewater using down flow microaerophilic fixed film reactor. Degradation of simulated textile wastewater (COD 7200mg/L and dye concentration 300mg/L) was studied in a microaerophilic fixed film reactor using pumice stone as a support material under varying hydraulic retention time (HRT) and organic loading rate (OLR). The intense metabolic activity of the inoculated bacterial consortium in the reactor led to 97.5% COD reduction and 99.5% decolorization of simulated wastewater operated under OLR of 7.2kgCODm3/d and 24h of HRT. FTIR, 1H NMR and GC–MS studies revealed the formation of lower molecular weight aliphatic compounds under 24h of HRT, leading to complete mineralization of simulated wastewater. The detection of oxido-reductive enzyme activities suggested the enzymatic reduction of azo bonds prior to mineralization. Toxicity studies indicated that microbial treatment favors detoxification of simulated wastewater.