Although a non-sterile, undiluted carpet dye effluent ( containing two anthraquinone dyes) did not support growth of Trametes versicolor, the pre-grown fungus removed 95% of its color in shake-flasks after 10 h of incubation. After decoloration, the COD of the cell-free supernatant increased and the toxicity was unchanged as determined by the Microtox assay using Vibrio fischeri. Decoloration rates decreased when either glucose alone or Mn2+ and glucose were added. T. versicolor, immobilized on jute twine in a rotating biological contacting reactor, also decolorized four successive batches of the effluent. There was no decoloration in any of the uninoculated, non-sterile controls.