The colonization pattern and extent of decay produced in paddy stubble by soil inhabiting mycoflora were done by using nylon net bag technique. Among the three methods used for isolation of fungi, dilution plate technique recorded the highest number of fungi followed by damp chamber and direct observation method. Nutrient availability and climatic conditions (temperature, humidity and rainfall) influenced the occurrence and colonization pattern of fungi. Maximum fungal population was recorded in October ($48.99{ imes}10^4/g$ dry litter) and minimum in May ($11.41{ imes}10^4/g$ dry litter). Distribution of Deuteromycetous fungi was more in comparison to Zygomycetes, oomycetes and ascomycetes. In the early stage of decomposition Mucor racemosus, Rhizopus nigricans, Chaetomium globosum and Gliocladium species were found primarly whereas at later stages of decomposition preponderance of Aspergillus candidus, Torula graminis, Cladosporiun cladosporioides and Aspergillus luchuensis was recorded.