In the present paper, a feasible method was developed to grow fungal pellets in an air lift column reactor inoculated with mycelium fragments for improving separation effect of biomass from solution and reducing clogging effect of biomass; bioaccumulation of dye by the growing fungal pellets in the case of mycelium fragments inoculation was investigated. The results showed that inoculation with the mycelium fragments without any pre-treatment did not witness the formation of pellets; only pre-treated fragments using maize as both nucleus and carbon source for 72 h incubation guaranteed the formation of pellets in the air lift column reactor. Nearly 100% of dye removal was obtained by bioaccumulation of the growing pellets in successive three batches of dye wastewater treatment. The formation of pellets not only resulted in low clogging effect to promote mass transfer and dye bioaccumulation but also caused quick separation of dye-loaded biomass from treated wastewater. (C) 2011 Elsevier Ltd. All rights reserved.