The Present investigation focused on isolation and characterization of fungal strains which has an ability to decolorize textile dye, reactive Blue MR. Initially, the effluent sample was collected from the textile industry situated in ichalkaranji, India. The effluent sample was analyzed for their physicochemical properties. Various fungal species were isolated, and decolorization capabilities of these fungal species were evaluated for reactive Blue MR dye [50 %] in minimal medium, under optimum conditions. It was found that Aspergillus and Penicillium species showed higher decolonization capabilities after 48 hours of incubation. So these fungal isolates are potential candidates for bioremediation.