The genome sequence of the lignocellulose-degrading fungus Phanerochaete chrysosporium strain RP78 has been sequenced using a whole-genome shotgun approach, revealing a 30-million base-pair genome. This genome contains a large number of genes encoding secreted oxidases, peroxidases, and hydrolytic enzymes that are involved in lignin degradation. The study provides insights into the genetic basis of lignocellulose degradation, a key process in the global carbon cycle, and offers a framework for developing bioprocesses for biomass utilization, organopollutant degradation, and fiber bleaching. The genome is a high-quality draft sequence of a basidiomycete, a major fungal phylum that includes important plant and animal pathogens. White rot fungi, including P. chrysosporium, are efficient at degrading lignin, a complex aromatic polymer in wood. They use extracellular oxidative enzymes to break down lignin and related aromatic compounds found in explosive contaminants, pesticides, and toxic waste. P. chrysosporium is a well-studied white rot basidiomycete, phylogenetically distant from other sequenced fungi. Its genome contains a large number of genes involved in lignin degradation, including multiple isozymes of lignin peroxidase (LiP) and manganese-dependent peroxidase (MnP). The genome also contains genes for extracellular FAD-dependent oxidases, which are likely candidates for generating hydrogen peroxide, a key intermediate in lignin degradation. In addition to lignin, P. chrysosporium completely degrades all major components of plant cell walls, including cellulose and hemicellulose. The genome harbors the genetic information to encode more than 240 putative carbohydrate-active enzymes, including 166 glycoside hydrolases, 14 carbohydrate esterases, and 57 glycosyltransferases. These enzymes are involved in the breakdown of lignocellulose and are essential for the degradation of plant cell walls. The genome also contains genes for secondary metabolism, including putative polyketide synthases and nonribosomal peptide synthases. Additionally, the genome contains mating type loci, which are typically associated with fleshy fruiting bodies and believed to govern the fusion of compatible homokaryons, the migration of nuclei, and the formation of a morphological structure known as the clamp connection. However, P. chrysosporium does not form clamp connections and the sexual basidiospores are formed in a simple, resupinate layer on the substrate. The study provides a comprehensive analysis of the P. chrysosporium genome, revealing the genetic basis of lignin degradation and the potential for the production of biologically active compounds. The genome data will be useful for further research on the genetic features that distinguish pathogenic andThe genome sequence of the lignocellulose-degrading fungus Phanerochaete chrysosporium strain RP78 has been sequenced using a whole-genome shotgun approach, revealing a 30-million base-pair genome. This genome contains a large number of genes encoding secreted oxidases, peroxidases, and hydrolytic enzymes that are involved in lignin degradation. The study provides insights into the genetic basis of lignocellulose degradation, a key process in the global carbon cycle, and offers a framework for developing bioprocesses for biomass utilization, organopollutant degradation, and fiber bleaching. The genome is a high-quality draft sequence of a basidiomycete, a major fungal phylum that includes important plant and animal pathogens. White rot fungi, including P. chrysosporium, are efficient at degrading lignin, a complex aromatic polymer in wood. They use extracellular oxidative enzymes to break down lignin and related aromatic compounds found in explosive contaminants, pesticides, and toxic waste. P. chrysosporium is a well-studied white rot basidiomycete, phylogenetically distant from other sequenced fungi. Its genome contains a large number of genes involved in lignin degradation, including multiple isozymes of lignin peroxidase (LiP) and manganese-dependent peroxidase (MnP). The genome also contains genes for extracellular FAD-dependent oxidases, which are likely candidates for generating hydrogen peroxide, a key intermediate in lignin degradation. In addition to lignin, P. chrysosporium completely degrades all major components of plant cell walls, including cellulose and hemicellulose. The genome harbors the genetic information to encode more than 240 putative carbohydrate-active enzymes, including 166 glycoside hydrolases, 14 carbohydrate esterases, and 57 glycosyltransferases. These enzymes are involved in the breakdown of lignocellulose and are essential for the degradation of plant cell walls. The genome also contains genes for secondary metabolism, including putative polyketide synthases and nonribosomal peptide synthases. Additionally, the genome contains mating type loci, which are typically associated with fleshy fruiting bodies and believed to govern the fusion of compatible homokaryons, the migration of nuclei, and the formation of a morphological structure known as the clamp connection. However, P. chrysosporium does not form clamp connections and the sexual basidiospores are formed in a simple, resupinate layer on the substrate. The study provides a comprehensive analysis of the P. chrysosporium genome, revealing the genetic basis of lignin degradation and the potential for the production of biologically active compounds. The genome data will be useful for further research on the genetic features that distinguish pathogenic and