Dead biomass prepared from newly isolated Pleurotus ostreatus strain was tested for their efficiency in removal of indigo carmine. The effects of operational parameters such as contact time, initial dye concentration, amount of biomass, initial pH and agitation rate on removal were examined. The dye removal increased rapidly during the first 60 minutes (87%) and remained nearly constant between 60 - 120 minutes of adsorption (87 - 90%). The removal of dye by dead biomass of newly isolated P. ostreatus was clearly dependent on the initial dye concentration of the solution and dye removal was reduced from 83% to 53% as concentration was increased from 100 to 500 mg/L indigo carmine. Results were analyzed by the Langmiur, Freundlich, Dubinin-Redushkevich (D-R), Temkin, Frumkin, Harkins-Jura, Halsey, Henderson isotherm using linearised correlation coefficient. The kinetics of adsorption of IC have been discussed using six kinetic models, i.e., the pseudo first order model, the pseudo second order model, the Elovich equation, the intraparticle diffusion model, the Bangham equation, the modified Freundlich equation. In order to determine the best fit isotherm and kinetic models, three error analysis methods of residual mean square error (RMSE), chi-square (X-2) statistic and the average percentage error (APE%) were used to evaluate the data.