Abstract: Monilia sitophila (Mont.) Sacc. was found to be able, by the action of its pectolytic enzymes, to render paddy straw suitable for making paper pulp. As a result of studies of the various factors influencing the growth, the formation of enzymes and the enzymatic activity of the fungus, a simple, economical and practicable procedure for converting paddy straw into paper pulp was formulated.