One hundred and fifty soil samples collected from three climatologically different sites were screened for laccase production using lignin-guaiacol agar plates. All the 12 fungi isolated excepting one gave positive test for qualitative lignin degradation. Five fungi were selected further for quantitative study of wood/lignin degradation. The basidiomycetes proved to be better laccase producers and decomposers of wood/lignin. These gave comparable results to a known white-rot fungus,Polyporus versicolor (L.) Fr. and degraded wood sawdust causing a total weight loss of 7–8% and lignin loss up to 10% in 30 days.