Aims: The mikan, or Japanese mandarin orange, is a popular fruit in Japan, but its peel is one of the major agricultural wastes. The aims of this study were to screen, isolate, and characterize a mikan peel-degrading microbe. Methods and Results: Several samples including activated sludge, sediment, compost and spoiled mikan peel were collected and cultured in a minimal salt medium containing mikan peel as the sole carbon source. Degradation activity was found in a culture of the spoiled mikan peel, and a fungal strain, designated OP1, with both cellulolytic and pectinolytic activity was isolated. No toxic metabolites, such as mycotoxins, were found in OP1 cultures, as evaluated by gas chromatography/mass spectrometry. A phylogenetic analysis strongly suggested that OP1 is a novel species of the genus Penicillium. Conclusions: Results suggest that Penicillium sp. OP1 plays an important role in aerobic microbial degradation of cellulose/pectin-rich biomasses in soil ecology, and further imply that this strain may be useful for both simultaneous cellulase/pectinase production and reduction of agricultural waste. Significance and Impact of the Study: The present results advance our understanding of microbial degradation of cellulose/pectin-rich biomasses in the natural environment, and offer a new tool for reduction of agricultural waste, which is important for sustaining circulatory societies.