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One of the very serious problems confronting the modern world is the widespread pollution caused by the untreated industrial wastes. Among them, the pollution from textile dye industry is increasing tremendously with the use of synthetic colorants and the resultant discharge of hazardous dye effluents in the environment. The present work was designed to isolate an industrially important bacterium, characterize its novel compounds and test their potential applications as a way to control the present environmental pollutions. This work decisively established that S. marcescens SB08 strain is a major resource of bioactive compounds, offering good scope for textile colorant and enzyme production. The experiments and results derived in this work confidently demonstrate that the commercial production of prodigiosin from S. marcescens SB08 is a viable venture which could be used as an eco friendly natural dye colorant. Large scale production of the pigments and enzymes from this natural source for industrial application is sustainable and could be easily sourced from our natural environment without causing any hazards to ecology.