Pleurotus ostreatus, a saprotrophic fungus, has been proposed for the remediation of organic contaminants in soils and more recently for modifying the hydraulic and mechanical behaviour of granular soils. The in situ performance of fungal-based biotechnologies will be controlled by the fungal growth and associated biochemical activity that can be achieved in soil. In this study, the influence of environmental conditions (temperature, degree of saturation), substrate type (lignocellulose and spent coffee grounds) and concentration on the mycelium growth of P. ostreatus in sand are investigated. Furthermore, the evolution of growth/survival indicators (respiration, ergosterol concentration) and enzymatic activity (laccase, manganese peroxidase) are investigated. Temperature was shown to have a strong influence on the growth of P.ostreatus in sand: growth was observed to be delayed at low temperatures (e.g. 5 °C), whereas growth was prevented at high temperatures (e.g. 35 °C). No growth was observed at very low degrees of saturation (Sr=0% and 1.2%), indicating there is a critical water content required to support P.ostreatus growth. Within the mid-range of water contents tested radially, growth of P.ostreatus was similar. However, growth under saturated soil conditions was restricted to the air-water atmosphere due to the requirement for oxygen availability. Low substrate concentrations (1%–5%) resulted in high radial growth of P.ostreatus, whereas increasing substrate content further acted to reduce radial growth, but visual observations indicated that fungal biomass density increased. These results are important for understanding the feasibility of P.ostreatus growth under specific site conditions and for the design of successful treatment strategies.