Forty-three species of fungi were isolated from woods in Sundarban mangrove forest, India. The most frequently isolated species were members of Aspergillus, Chaetomium, Curvularia, Fusarium, Mucor and Pestalotiopsis. Species of Acremonium, Neosartorya and Cladosporium were rare, and no members of the Basidiomycotina were found. Few commonly encountered fungal isolates were tested for their wood decay ability by weight loss method in Czapek- Dox medium. The tested isolates showed soft rot of wood in laboratory tests. Chaetomium funicolum was found to cause 46 % weight loss being the most active in this regard. The rate of decomposition increased until about 45th day of incubation, it decrease thereafter.