In recent years, there has been an intensive research on the application of degradative activities of fungi for treatment of various non-degradable materials such as petroleum hydrocarbons, polychlorinated biphenyls, pesticides, polycyclic aromatic hydrocarbons, dyes and so on. Chief of all, the fungal treatment technology is received the spotlight as one of the most promising alternatives to replace present methods for the treatment of dye wastewater. The present paper reviews the recent trend in research on the decolorization and biodegradation of dyes by various fungi, and improvements in bioreactors and bioprocesses involved the fungal treatment of dye wastewater. It also discusses alternatives and perspectives for the innovation of mycoremediation to treat dye wastewaters.