This work investigates the application of a microfiltration-membrane bioreactor-nanofiltration hybrid process for textile effluent reclamation. The indigo blue dye was efficiently retained by the microfiltration membrane (100%), which allows its recovery from the concentrate stream. The membrane bioreactor resulted in chemical oxygen demand (COD) and ammonia removal of 73% and 100%, respectively. Nanofiltration technology was successfully applied to polish textile effluent. The principal cause of flux decline was determined to be concentration polarization. The nanofiltration permeate meets the quality requirements for all processes within the textile industry, while the nanofiltration concentrate can be used for less demanding purposes.