Organic halides are considered environmentally suspect as some are known to have toxic, mutagenic and carcinogenic effects on the biota. A fungus, which is able to affect close to 60 % AOX, colour and TOC removals from softwood bleachery effluents in batch tests have been isolated and tentatively identified. This fungus was subsequently tested for its ability to degrade PCP, a common preservative used in controlling wood rot. Low agitation speeds preferred by the fungus during batch culturing indicated its tendency towards immobilization on a solid matrix. A continuous upflow packed bed reactor was designed and operated successfully in our laboratory for over one and half year with somewhat higher performances over those obtained in batch tests. Around 80% AOX and 60% colour and TOC removals were observed in this packed-bed reactor treating effluents from a softwood pulp bleachery. The PCP removals, which were tested separately, were also comparable to the AOX removals.