Melanocarpus albomyces IIS-68, a thermophilic fungus was used for the production of extracellular xylanase on various agroresidues in solid-state fermentation (SSF). Growth on untreated wheat straw and sugar cane bagasse supported xylanase production, while rice straw and rice husk did not. Alkali treatment and acid chlorite treatment of these latter substrates, which lead to extensive delignification, enhanced xylanase production. In contrast these treatments caused a decline in xylanase activity on wheat straw and bagasse. Acetyl esterase was produced concurrently with xylanase, maximal activity being produced on bagasse. Enzyme production was higher in SSF than in submerged fermentation (SmF). Studies with electron micrographs indicated that culture filtrate proteins were able to degrade wall polymers.