Water-pollution control is presently one of the major areas of scientific activity. While colored organic compounds generally impart only a minor fraction of the organic load to wastewater, their color renders them aesthetically unacceptable. Effluent discharge from textile and dyestuff industries to neighbouring water bodies and wastewater treatment systems is currently causing significant health concerns to environmental regulatory agencies. Color removal, in particular, has recently become one of major scientific interest, as indicated by the multitude of related research reports. During the past two decades, several physico-chemical decolorization techniques have been reported, however, few have been accepted by the textile industries. But these techniques have high cost of implementation, low efficiency and inapplicability to a wide variety of dyes. The ability of microorganisms to carry out dye decolorization has received much attention. Microbial decolorization of dyes is seen as a cost-effective method for removing these pollutants from the environment. In recent years, there has been an intensive research on fungal decolorization of dye wastewater. It is becoming a promising alternative to replace or supplement to present treatment processes.