Abstract: Presently, 50-60 m3 of water needed to produce a ton of paper and around 240-250 chemicals have been identified in effluents, which are produced at different stages of paper making in pulp and paper industry. The pulp and paper industry is typically associated with pollution problems related to high BOD, COD, toxicity, AOX, color, suspended solids, lignin and its derivatives and chlorinated compounds. Although numerous studies have looked ways by various researchers to remove COD, BOD, color etc. of pulp and paper effluents, the problem still persists. Number of microorganisms including bacteria, fungi and actinomycetes has been implicated to degrade the xenobiotic compounds present in pulp and paper mill effluent. This article review the origins and effects of major pollutants present in pulp and paper mill effluents and the progress made in their reduction through fungi, bacteria, algae and enzymes as well as further scope is also discussed.