Microbial isolates including bacteria and fungi were chosen for degradation of textile dyes in soil samples collected from various spots. Based on the degradation of the diazo dye Congo Red, the isolates were chosen for degradation of four other commercial dyes. They were identified as Aspergillus spp. and Penicillium sp. The percentage of decolorization of the dyes by fungal cultures in Nitrogen limited media under still and shake conditions were studied. Aspergillus sp1was able to degrade all the four dyes, while only three dyes were degraded by Aspergillus sp2, Penicillium sp. The present study revealed that utilization of fungi for degradation is an easy and effective process.