A novel polymeric dye-degrading fungal strain ATCC 74414 was isolated. Taxonomic identification including morphological and cultural characterization indicated that this isolate was a strain of Penicillium, Strain ATCC 74414 aerobically decolorized both Poly R-478 and Poly S-119 in liquid media containing 0.01% of polymeric dyes. The decolorization rate was examined in three distinct liquid media: Schenk and Hildebrandt-K2SO4 medium (SHK), potato dextrose broth (PDB), and half Murashige-Skoog medium (HMS). Strain ATCC 74414 rapidly decolorized R-478 in SHK medium but the color was subsequently released from the mycelial mass into the medium after 2-3 days, indicating that the decolorization in SHK medium could be due to adsorption of Poly R-478 by the mycelia. In contrast, in HMS and PDB media ATCC 74414 decolorized Poly R-478 more steadily, and the: dye was initially adsorbed onto the mycelia and was subsequently decolorized without being released into the medium. Strain ATCC 74414 also decolorized Poly S-119 steadily in SHK, HMS and PDB media. It appears that the decolorization process involved initial mycelial adsorption of dye compounds, which was probably followed by biodegradation through microbial metabolism, and the decolorization may be affected by medium constituents. Although aerobic decolorization map not necessarily lead to complete mineralization of dyes, these results have suggested the potential of strain ATCC 74414 in bioremediation of dye-contaminated water and soil.