Laccase was produced from Pleurotus florida under solid-state fermentation, and the production was optimized by response surface methodology. The predicted maximum laccase production of 8.81 U g(-1) was obtained by the optimum concentration of malt extract, banana peel, wheat bran and CuSO4, which was found to be 0.69 g, 10.61 g, 10.68 g and 77.15 ppm, respectively. The validation results suggested that the laccase production was 7.96 U g(-1) in the optimized medium, which was close to the predicted value. Decolorization efficiency of P. florida laccase was evaluated against malachite green (MG). Rapid decolorization of MG dye was observed, and a dark-coloured precipitate was formed in the reaction mixture. HPLC analysis indicated that the laccase enzyme degraded MG by the demethylation process. The toxicity of MG was reduced to 67% after the treatment with laccase, which was confirmed by a phytotoxicity study.