The decolourization of commercially available azo dye, Reactive Red 2 was studied since, to a certain extent, azo and reactive dyes are carcinogenic. In this research study, a novel fungus, Geotrichum candidum has been tried to degrade the dye colour. Batch studies were conducted in a defined medium with pH 7.0. As decolourization progressed, there was a substantial reduction in pH to 5.23. Maximum biomass growth was observed in the test organism on the 8th day. Maximum decolourization of Reactive Red 2 by Geotrichum candidum of up to 85.2% was seen on the 8th day only. In this case, the mycelium of the test organism also absorbed some amount of colour. Thus, the fungi can be used for decolourizing the colour present in the dye which may have carcinogenic effect on humans and that they have the potential to minimize environment risk.