AbstractThe study was carried out to identify wood‐decay fungi, and quantify the diversity and host preferences of the fungi in major sawmill depots in north‐eastern Bangladesh. A total of 23 fungal species belonging to 15 genera in seven families were recorded and identified. The Polyporaceae was the most dominant family, while Schizophyllum commune was the most abundant species among all species recorded. Other commonly observed fungal species were Daldinia concentrica, Trametes versicolor, Trametes coccinea and Flavodon flavus. The Simpson diversity index (0.93) and Shannon–Wiener index (2.90) showed a wide distribution of the wood‐decay fungi in the study areas. The species diversity index (0.036), species evenness index (0.92) and species richness index (3.40) indicated a diverse distribution of the fungal species. Two‐thirds of the identified fungal species showed significant preferences for their hosts. The host vulnerability was found to be significantly affected by storage facility, duration of storage, depot yard condition, treated or non‐treated wood and shade facility. The findings of this work may help sawmill owners to utilize a scientific approach to management of logs and timber stored in depots, to minimize fungal decay before incurring any economic loss.