In an era of increasing focus on sustainability, managing industrial effluents is essential to reduce environmental impacts, particularly from the textile and dyeing sectors. This paper explores the potential of wood-based materials as effective agents for color effluent removal. The active components of wood, such as lignin, cellulose, and hemicellulose, play a crucial role in this process. Lignin, with its complex aromatic structure, interacts with dye molecules through hydrogen bonding, π-π interactions, and electrostatic forces, enabling efficient adsorption and degradation of dyes. Cellulose and hemicellulose further enhance the adsorption capacity. Despite its potential, challenges include maintaining consistent wood quality and optimizing application techniques for industrial scale. This paper provides a comprehensive overview of the mechanisms, efficiency, and constraints, encouraging future research to refine wood-based solutions. Ultimately, these findings contribute to developing more sustainable, eco-friendly wastewater management strategies.