V5579 Sgr was a fast nova discovered in 2008 April 18.784 UT. We present the optical spectroscopic observations of the nova observed from the Castanet Tolosan, SMARTS, and CTIO observatories spanning over 2008 April 23 to 2015 May 11. The spectra are dominated by hydrogen Balmer, Fe II, and O I lines with P-Cygni profiles in the early phase, typical of an Fe II class nova. The spectra show He I and He II lines along with forbidden lines from N, Ar, S, and O in the nebular phase. The nova showed a pronounced dust formation episode that began about 20 days after the outburst. The dust temperature and mass were estimated using the WISE data from spectral energy distribution (SED) fits. The PAH-like features are also seen in the nova ejecta in the mid-infrared Gemini spectra taken 522 d after the discovery. Analysis of the light curve indicates values of $t_2$ and $t_3$ about 9 and 13 days, respectively, placing the nova in the category of fast nova. The best-fit cloudy model of the early decline phase JHK spectra obtained on 2008 May 3 and the nebular optical spectrum obtained on 2011 June 2 shows a hot white dwarf source with $T_{BB}$ $\sim$ 2.6 $\times$ 10$^5$ K having a luminosity of 9.8 $\times$ 10$^{36}$ ergs s$^{-1}$. Our abundance analysis shows that the ejecta is significantly enhanced relative to solar, O/H = 32.2, C/H = 15.5, and N/H = 40.0 in the early decline phase and O/H = 5.8, He/H = 1.5, and N/H = 22.0 in the nebular phase.