Treatment of dye wastewater from the textile industry presents a major problem and biotreatment with white rot fungi seems to be a viable option. In this study,Phanerochaete chrysosporium, a commonly used white rot fungus, was used to biodegrade an azo dye, namely Tectilon Yellow 2G. The effect of various operational parameters, e.g., dye oncentration, culture age, agitation rate and initial glucose concentration were investigated. The upper non-inhibitory TY-2G dye concentration was found. The optimum values for CA, agitation rate, and initial glucose concentration were determined by optimizing the highest biodegradation, new metabolite formation. The maximum adsorption capacity of P. chrysosporium was also determined and the isotherms were plotted. As a result, P. chrysosporium was found to be very effective in decolorizing the selected azo dye by both biodegradation and adsorption.