<p>Wood wastes derived from coconut pose a major threat to the environment and degradation of wastes could result in nutrients available in soil for plant growth. A fungal strain isolated from decaying wood was studied for both morphological and molecular characters and identified as <i>Aspergillus terreus</i> DW1. Lignin and cellulose degradation potential of DW1 was assessed in liquid medium supplemented with lignin and cellulose based substrates Degradation of different types of coconut derived wastes namely coir pith, coconut biowastes and mill wastes were studied on inoculation with DW1. There was reduction in particle size and increase in voids noticed on the surface of wood wastes treated with DW1. Coconut derived wood wastes were subjected to various pretreatments such as lime, charcoal, cow dung, microwave assisted heating followed by inoculation with DW1. Lignin and cellulose content in different treatments were assessed and selected lignolytic and cellulolytic enzymes were also monitored during incubation period. Lowest Carbon Nitrogen ratio was observed in treatment with cow dung followed by DW1 inoculation. Bacterial and fungal population was assessed during the degradation period and found that there was an increase in total fungal population in all treatments indicating possible multiplication of DW1 during degradation. <i>Aspergillus terreus</i> DW1 could be used for degradation of coconut derived wood wastes and degradation rate can be further enhanced by pretreatments.</p> Graphical Abstract <p></p>