Abstract: A white rot fungus isolated from soil samples enriched by continuous pulp and paper mill effluent irrigation and identified as Trametes versicolor was capable of decolorization and degradation of phenol from paper mill effluent. 14C synthetic lignin mineralization assays showed that Trametes versicolor assimilated 24.3% of the total label. There was 76% effluent decolourization along with 78% COD reduction. The effluent chlorinated phenol degradation was 85% by Trametes versicolor, when added with 1% glucose as co-substrate.