Abstract: To improve the biological treatment effect of paper-making wastewater, the screening and identification of strain degrading lignin and its application were carried out. The strain able to degrading lignin was obtained after a series of experiments including sampling, domesticating, separating and identifying etc, and it was defined as a white-rot fungi, short-rod, aerobic alkali-producing bacteria based on investigations on its physiological and biochemical prosperities. After Gram's stain, the strain was identified as a Gram-positive bacterium. In further research, the strain strongly capable of degrading was selected to apply in wastewater treatment experiment and the results showed that this bacterium possessed a removal rate of 80.9% for CODCr in waste-water from paper mills, which displayed good prospects of application.