The aim of this study is to isolate paraquat degrading fungi from soil, piece of wood, or mushroom samples. Seventy-nine isolates were obtained. Considering the ability to grow on agar plate containing 0.3% paraquat and to produce ligninolytic enzymes i.e. lignin peroxidase, manganese peroxidase, and laccase when growing on agar medium containing chromogenic substances, it was found that 17 isolates had these abilities. These fungal isolates were further tested with increasing amount of paraquat at 0.4%, 0.5%, and 0.6%. The Results showed that 5 isolates could tolerate up to 0.6% paraquat. Identification based on morphological characteristics and ITS nucleotide sequences revealed that isolate PQ3, PQ5, PQ6, A319 and P279 had close similarity to Nodulisporium sp., Neosartorya fischeri, Hypoxylon fragiforme, Phoma sp. and Setosphaeria rostrate, respectively, with 99-100% identity. Two isolates, PQ5 and A319, showed high paraquat degradation ability in liquid culture. Isolate PQ5 showed 37% degradation of 0.02% paraquat in 30 days with the presence of manganese peroxidase and laccase activity at 34.28 and 22.39 Unit/liter, respectively. Isolate A319 showed 37% degradation of 0.01% paraquat in 30 days with the presence of manganese peroxidase and laccase activity at 117.76 and 214.52 Unit/liter, respectively. Investigating of paraquat degradation in soil illustrated that isolate A319 was able to grow well in paraquat-bearing soil, but unable to reduce the paraquat. Isolate PQ5 showed potential to degrade 250 ppm of paraquat in sterile soil at 12.25 %; however, the fungus and its enzyme activity might be inhibited by native microorganisms in non-sterile soil. Neosartorya fischeri PQ5 that obtained from this study which have potential to reduce paraquat should be further studied for their optimal conditions in order to degrade paraquat in an actual environment condition.