Decolorization of Acid Blue 7 which is used widely in leather industry was investigated as a model for a decolorization system using soluble starch yeast extract medium under agitated and static conditions with Trametes trogii TEM H2. The effects of different physico-chemical parameters were tested and optimal decolorization rates occurred at pH 5.0 and at 27 degrees C. Decolorization of Acid Blue 7 under agitated and static conditions was determined to be 99.9% and 63.5%, respectively. Decolorization was associated with laccase activity which reached 1110.3 U/L in agitated cultures in the presence of Acid Blue 7 on the 6th day of cultivation. T. trogii TEM H2 was further evaluated for the decolorization of 8 other leather dyes, such as Acid Black 210, Acid Green 20, Acid Yellow 36, Acid Black 24, Acid Black 234, Acid Violet 17, Acid Blue 134, Acid Brown 349, and a mixture of Acid Blue 7 with these 8 leather dyes and leather industry effluents. The decolorization rates after 24 h for the dye mixture and the effluent (10%) were 88% and 48%, respectively. The strain was considered as a good candidate for biodegradation and bioremediation of leather dye-polluted effluents due to its laccase production and decolorizing ability.