This study presents the standardization of nutrient concentration, pH and temperature required to decolorize the anerobically treated distillery spent wash using the fungus Cladosporium cladosporioides. Experiments were carried out to measure the decolorization of distillery spent wash effluent and it was found to be effective in acidic environment. From the results it was observed that a maximum color reduction of 52.6 % and Chemichal Oxygen Demand. removal of 62.5 % were achieved. The optimum conditions required for the growth of the fungus was found to be 5 g/L of fructose, 3 g/L of peptone, 5 pH and 35 °C. It was also observed that during the process a maximum of 1.2 g of fungal growth was attained. Decolorizing ability of the fungus was confirmed using spectrophotometer and High Performance Liquid Chromatography analysis. Single factorial experimental design was used to optimize the parameters. Apart from decolorization it was observed that fungus also has the ability to degrade the spent wash efficiently. This investigation could be an approach towards control of environmental pollution and health hazards of people in and around the distillery unit.