The effect of steam explosion pretreatment on biodegradation of lignin in wheat straw was studied in this paper. Through experiments and analysis, 0.8MPa operation pressure and 1:20 wheat straw to water ratio are optimum for destroying lignin and the maximum of lignin loss rate is 19.94%. After steam explosion pretreatment, the wheat straw was retted by Trametes versicolor for 40 days. Biodegradation rate of lignin was tested and the maximum of 55.40% lignin loss rate was found on day 30. During the whole process of both steam explosion pretreatment and biodegradation, 75.34% lignin was degraded, without steam explosion the biodegradation of raw material the degradation rate of lignin was 31.23% only. FT-IR spectroscopy, TGA and SEM were used for further validating the results of biodegradation.