The present study deals with the development of a wood assisted fungal system (WAFS) from wood chips using Trametes hirsuta to remove polycyclic aromatic hydrocarbons (PAHs) in BRW. The WAFS exhibited a 1.4-fold higher ligninolytic enzyme production than free fungi in the effluent. Further, to understand PAHs bioremediation by T. hirsuta, biodegradation along with biosorption were studied in model PAHs, phenanthrene (Phe) and benzo (a) pyrene (BaP), in the presence of synthesized rhamnolipids. The WAFS mineralized up to an average of 91.26% Phe and 87.72 % BaP along with biosorption of 12.35% Phe and 18.36 % BaP within 12 days. Thus, the addition of rhamnolipids showed 1.2-fold enhanced biodegradation. However, rhamnolipid concentrations beyond 50 ppm reduced the degradation efficiency of WAFS. Moreover, the degradation capability of total aromatic hydrocarbon (TAH) in biorefinery wastewater by WAFS is 1.8-fold higher than that of free fungi, which confirms the effectiveness of the system. Implications: Simultaneous application of white-rot fungus along with surfactant into a pollutant environment affects the microenvironment of the fungus and reduces the production of their degradative enzymes. In addition, the requirement of periodical supplement of external nutrient in the real-time matrix for the growth of white rot fungi may trigger competitive growth of indigenous microorganisms. Considering this glitch, the current work utilizes the carpenter waste for the strategical develop a wood assisted fungal system to protect the microenvironment of the fungi in the presence of rhamnolipids and contribute to their survival in real time matrix, with enhanced PAHs degradation efficiency.