A novel developed bacterial-yeast consortium (Brevibacillus laterosporus and Galactomyces geotrichum) has been acted as a proficient biocatalyst. It decolorized 92% of sulphonated azo dye-Reactive red 198 (RR 198) within 18h at a dye concentration of 50 mg L-1 as compared to 58 and 42% decolorization using Brevibacillus laterosporus and Galactomyces geotrichum alone respectively in the same experimental conditions (pH-7, 40 °C, in static condition). The cumulative action of enzymes such as veratryl alcohol oxidase, laccase, NADH-DCIP reductase and azoreductase in the culture was responsible for dye degradation. Fourier transform infrared spectroscopy and High performance thin layer chromatography analysis of dye and its extracted metabolites suggested the biotransformation of RR 198 into simple metabolites; whereas the biotransformation of the same by individual microorganism was different than consortial biodegradation. According to Gas chromatography-Mass spectroscopy studies, RR 198 was biotransformed into much simpler compounds such as (ethylsulfonyl)benzene and 1,3,5-triazine by the bacterial-yeast consortium. This metabolic fate of dye was entirely different in consortium when compared to individual microbial treatment. Single microbial species could only lead to partial mineralization of intact dye molecule; whereas, nearly complete degradation of dye molecule was achieved using consortium culture. This study clearly suggests that the consortium has an enormous strength to catalyze RR 198 within a short period as compared to individual microbial cultures.