An effective batch aerobic study on lignin biodegradation with Phanerochaete chrysosporium is performed and process parameters are optimized. The optimum time is 14 days for lignin biodegradation of rice straw. At the optimum time, 2 percent glucose (carbon source) and 0.20 percent L-asparagine (nitrogen source) calculated on raw material, can degrade maximum lignin. The percent of lignin degradation at optimum GNC dose is 47.38 with lowest kappa number (k) value 23.58 with optimum inoculum concentration 20 percent (v/v) and optimum age of inoculum 7 days with pH 4.5. The minimum COD and BOD values for optimum GNC Dose treated effluents after 14 days digestion are 1,050 mg/L and 625 mg/L respectively. The optimum GNC Dose treated effluents having colour (OD at 465 nm) is 0.20 which is minimum.