Halogenated compounds create the most important class of xenobiotic which commonly lead to pollution. Some of these compounds are very toxic and cause enormous problems to human health and to the environment. Many of these toxic chemicals have been shown to occur in various extreme habitats. Pollutant-degrading microorganisms, adapted to grow in various environments, play an important role in the biological treatment of polluted extreme habitats. The presence of dehalogenase producing microorganisms in extreme habitat in particular is necessary since the enzyme can catalyze the removal of a halogen atom from a substrate. Therefore, it can reduce the toxicity of the halogenated compound and some are of interest for study in industrial application. Thermophiles, psychrophiles, acidophiles, alkaliphiles and halophiles are types of extremophiles. Knowledge of the biodegradation of toxic chemicals in extreme environment is limited. Here, examples of dehalogenase producing bacteria isolated from various extreme conditions and its special characteristics/features will be discussed in this review.