An improvement in animal feeding is one of the important and basic conditions for the better management of farming of animals. It was recognized that poor quality of the feed is mainly responsible for the poor animal performance. For most farming practices, feed is an expensive component in livestock farming. Alternative feed can be obtained from agricultural by-products with huge amount around the world. The main factors limiting the utilization of agricultural by-products like paddy straw, wheat straw and corn stover are their low digestibility, low protein content and some time low palatability. However, the nutritive value of the agricultural by-products can be enhanced through their biological treatment and hence play an important role to meet nutrient requirements of the animals. Thus, an alternative approach is biological treatment especially fungi to increase digestibility of agricultural by-products. The use of white rot fungi, brown rot fungi and soft rot fungi that metabolize lignocelluloses is a potential biological treatment to improve the nutritional value of agricultural by-products. This paper aims to discuss the role of fungi in increasing the nutritional value of agricultural by-products like paddy straw, wheat straw and corn stover.Keywords: Agricultural by-products, Biological treatment, fungi, Lignocelluloses