The present work examines the production of ethanol via direct fermentation of pure celluloses and lignocellulosic wastes by;two soil fungi isolated under anaerobic conditions. The strains were cultured on a defined medium containing filter paper slurry as the carbon source under anaerobic, microaerophilic, and aerobic conditions. After complete degradation of the cellulose, lignocellulases and fermentation products were determined. Highest activities for Trichocladium canadense (strain Q10) and the basidiomycete strain (strain H2), were obtained when cultures were incubated under microaerophilic conditions and air, respectively. Laccase activity was present in the culture supernatants of both strains, but peroxidase was only produced by strain H2. Ethanol was the major nongaseous fermentation product. Highest conversion of available cellulose to ethanol was obtained with strain Q10 (90-96%), under microaerophilic conditions. Ethanol production decreased when microcrystalline cellulose and lignocellulosic substrates were used.