Dye wastewater management has been a challenging task for the textile industry. In this study, basidiomycetes fungi was explored for its ability to degrade dye. Isolate EL2, collected from the decaying woods around Kampar, Perak, Malaysia was selected for this purpose. The collected isolate was identified as Trametes ljubarskyi by using a molecular characterization method and morphological observation. Then, it was screened with solid agar supplemented with 2,2-azino-bis-3-ethylbenzothiazoline-6-sulfonic acid, guaiacol and Remazol Brillant Blue R dye for laccase production. Four different nitrogen sources were involved in further liquid screening for optimization of laccase production in EL2. Based on the results obtained, urea is the best candidate, as it was able to produce maximal laccase activity of 50.82 U/(L¢d), as compared to three other nitrogen sources (1.11-5.08 U/(L¢d)). Besides, EL2 was able to significantly decolourize Reactive Violet 5 (97.92%) on day 7.

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