Dye decolorization potential of A. bombycis culture was influenced by several factors such as initial dye concentration, biomass concentration, pH, temperature, and required aerated conditions. Induction of azoreductase, laccase, phenol oxidase, and Mn-peroxidase enzymes was observed during dye decolorization phase. A. bombycis pellets showed potential in mineralization of dye in the aerobic reactor system. Isolated fungal strain A. bombycis showed better dye decolorization performance in short duration of time (12 h) as compared to other reported fungal cultures.Graphical abstractDegradation of RR31 dye in developed aerobic fungal pelleted reactor.