Twelve strains of wood decaying Basidiomycetes were tested for ability to decomposelignin in saw dust of Pine, Quelcus, Rawan and Zelkowa, wood and to transform inorganic nitrogen in the medium into organic crude protein. In this test, one strain of Pleurotus ostreatus showed to be 49% of its ability of lignin decomposition. The increasing rate of the crude protein went up to 26%. It is considered, therefore, saw dust can he a useful animal food by microbial treatment.