Myceliophthora vellerea HQ871747 was isolated from decayed wood sample and was subjected to phylogenetic analysis by using basidiomycete-specific ITS primers. Preferable physicochemical parameters were identified to achieve maximum enzyme and decolorization efficiency. M. vellerea HQ871747 tolerated 20 g L-1 NaCl concentration without decrease in average rate of decolorization and showed more than 50% decolorization up to 7th cycle of repetitive dye addition. It is also able to degrade mixture of various reactive, acidic, direct and disperse dyes. In immobilized packed-bed reactor 29-65 mg L-1 h(-1) decolorization rate was achieved with >80% COD removal, 154 and 75 UL-1 MnP and laccase activity respectively. Purified MnP and laccase were monomeric protein with corresponding 37 and 25 kDa size on the SDS-PAGE. In this study it is proposed that the asymmetric cleavage of RB220 and HPLC, NMR and GC-MS confirmed formation of 2-diazo benzene sulfonic acid, naphthalene-2-sulfonic acid and 4-(4-diazenyl-5-oxo-4, 5-dihydro-1H-pyrazol-1-yl) benzene sulfonic acid. Treated wastewater was found to stimulate the growth of selected soil bacteria as well as plant growth. (C) 2013 Elsevier B.V. All rights reserved.