In the current project the ability of white-rot fungus Ganoderma lucidum IBL-05 was investigated for the decolourisation of some direct textile dyes. In the initial time course study maximum decolourisation (83.78 +/- 5%) was observed for Solar golden yellow R at pH 4 and temperature 30 degrees C after 6th day. Various process parameters like optimum pH, incubation time, temperature and additional carbon and nitrogen additives were optimized to achieve maximum decolourisation of the dye by G. lucidum IBL-05. Addition of starch (1%) accelerated the dye decolourisation (96 +/- 3%). All the nitrogen sources showed an inhibitory effect oil dye decolourisation and enzyme induction. Manganese peroxidase (MnP) was found to be the only enzyme (256 +/- 5 U/mL) secreted by G. lucidum IBL-05.