Decolorization of three triphenylmethane dyes by three bird's nest fungi-Cyathus bulleri, C. stercoreus, and C. striatus-was studied. Cyathus bulleri was found to be the most efficient in decolorization as demonstrated by the disappearance of the dyes from cultures, monitored by decreases in absorbance. Growth of the Cyathus spp. was not affected by the presence of dyes in the cultures. Decolorization of dyes was also observed with extracellular culture filtrates, indicating exocellular activity. Laccase activity, tested in replicate cultures, was found to be maximum during the decolorization period. Nitrogen in the medium had no effect on decolorization.