This study addressed a critical environmental issue by addressing the treatment of textile wastewater using chitosan, an eco-friendly bio-adsorbent. This approach aligns with global efforts to reduce pollution and promote sustainability in industrial processes. The non-biodegradable Congo Red (CR) dye, widely used in textile production, poses carcinogenic risks due to its potential to generate benzidine through complex reactions. Thus, the effective treatment of industrial effluent containing CR dye is crucial. A series of batch experiments were conducted to investigate the effects of adsorbent dose, contact time, initial dye concentration, and pH on the adsorption process. The study employed a variety of scientific techniques to characterize chitosan and evaluate its efficacy, including Scanning Electron Microscopy (SEM), Fourier-Transform Infrared Spectroscopy (FTIR), zeta potential analysis, X-Ray Diffraction (XRD), and Brunauer-Emmett-Teller (BET) surface area analysis. These techniques provided a comprehensive understanding of the adsorption mechanisms. The experiments revealed a maximum removal efficiency of 97.6% at an initial dye concentration of 40 mg/l, a chitosan dose of 2 g/l, an optimized contact time of 120 minutes, and a pH of 7. The characterization of chitosan confirmed its suitability for adsorption. The study was scaled up to practical application in a pilot plant for textile wastewater treatment, demonstrating substantial removal efficiencies for color, COD, BOD5, and TDS, with average removal rates of 87.5%, 86.68%, 70%, and 81.2%, respectively. Furthermore, the research explored both the theoretical and practical aspects of using chitosan, demonstrating its viability as a wastewater treatment solution. By investigating an eco-friendly approach to wastewater treatment, this study made a significant contribution to the field.