Due to increasing problems of petroleum products including wastes and toxic pollutants, many researchers begin to study the nature and the great potential of microorganisms. Micro-organisms are one of the vast and varied natural resources. They can produce a vast variety of products such as Dyes, enzymes and drugs, so they have become an important resource for a future without oil. Serratia marcesceis a genus of Gram-negative , facultative anaerobic , rod-shaped bacteria of the Enterobacteriaceae family. Serratia marcescens has the ability to produce red pigment Prodigiosin as a secondary metabolite. It is very resistant bacteria in harsh environments. It can use inexpensive media and wastewaters rich in hydrocarbons for growing. Virulence of this bacteria is often for people with weak immune system. In this research color production and its ability to dye fabrics was studied. To reach highest yield of pigment production, the effect of different cultures were also studied. A culture containing starch as a carbon source, casein peptone as a nitrogen source and, magnesium and potassium salts was found suitable. Best pigment production conditions including temperature, oxygen content, pH and light were investigated. Results showed that the bacteria doesn't have essential need for oxygen and initial pH adjustment for pigment production. Dark environment had better result and optimum temperature was achieved at 25 ° C. Bacterial mutation assay was performed by applying UV irradiation, formaldehyde and chromium. Color change results compared to the original pigment using UV-Visible spectrophotometer. Enzyme essays shoed that bacteria has ability to produce protease and lipase. The dyeing procedure was performed on common textile fabrics. The pigment could dye wool, nylon and acrylic fabric at pH:5 with high washing fastness of 5 in grey scale. The colorant also showed anti-bacterial properties. FTIR spectra of pigment structure showed that the pigment is highly belong to the category of prodigiosin family. Keywords: secondary metabolites, Serratia marcescens, dyes, enzymes, dyeing, prodigiosin, FTIR, anti-bacterial