Fungi can survive in various environments on different media including wood. Lignin in timber is hard to degrade efficiently because of its polymer form, and only a few of it can be hydrolyzed because of its composite and complex structure. Ligninolytic fungi produce an extracellular enzyme to withstand to toxic or mutagenic chemicals exposure and known to degrade different types of pollutant compounds. Lignin decomposers were also known to play a significant role in the pulping process of paper mills, used in waste treatment such as textile and hydrocarbon wastes. This study was conducted to obtain fungal isolates that have de-lignification capability and to compare the ability of fungal isolates to degrade lignin. The research isolated samples from rotten wood and soil using selective lignin medium with tannic acid as sole C source. This study characterized the isolates by its morphology and identified using the Morphology and Taxonomy of Fungi book by Bessey (1950) as a reference. This study compared the ligninolytic capability by measuring the transparent zone formed on selective lignin media. This research found 14 isolates of fungi and all of them had a ligninolytic capability. Aspergillus Niger isolate has the highest ligninolytic capability by producing 6.45 cm clear zone diameter on the 7th day. Aureobasidium sp has the smallest clear zone diameter of 1.9 cm within the same period.