A potential lignin-degrading fungal strain, identified as Aspergillus flavus strain F10 have been studied for the treatment of pulp and paper mill effluent. The results of this study revealed that A. flavus effectively reduced the colour and lignin content (in the term of total phenolic content). It reduces colourity up to 31–51 % and lignin content 39–61%in ten days of incubation when used as a free form, while in immobilized condition it reduces more colourity and lignin content within 6 day of treatment. A significant reduction in color and lignin content by this fungus strain was observed after four days of incubation, indicating that fungus subsequently utilized chromophoric compounds thereby reducing lignin content and color. The toxicity of paper and pulp effluent was measured in the term of phytotoxicity. A high germination index of treated samples indicate that the treatment have reduced pollution load in effluent to low levels which are not toxic to plants.

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