The increasing use of synthetic dyes is alarming and their discharge as textile waste may cause substantial ecological damage.Biological decolorization of dye using microorganisms is an environmentally friendly and cost- competitive alternative to chemicalmethods. This study involves the application of laccase obtained from Pleurotus ostreatus, a common fungus, in decolorization and degradation of blue HFRL dye. This azo dye is a major constituent present in most of the textile mill effluents. The fungal cultures were inoculated and laccase was produced by solid state fermentation. The obtained enzyme was further used for dye decolorization on solid medium, liquid broth based medium and by using centre composite design. The results suggest the potential dye decolorization capacity of this fungal laccase.