Water Hyacinth (Echhornia crassipes) is the most important aquatic weeds. This study aimed to identify the species of microfungi which were grown in soil and degraded cellulose present in E. crassipes. Different types of fungi were isolated from soil samples containing decomposed E. crassipes. Soil containing decomposed E. crassipes from Laxmi Taal, Jhansi was investigated. Isolation of microfungi from soil was carried out on Potato Dextrose Agar (PDA) and microscopic method. A total of fourteen (14) microfungi was isolated namely Alternaria, Aspergillus niger, Cladosporium, Curvularia, Fusarium, Mucor, Nigrospora, Phoma, Pythium, Rizhopus, Gliocladium, Penicillium, Trichoderma, Helminthosporium. Of these microfungi Trichoderma, Mucor, Fusarium and Aspergillus had great potential for growth on PDA. Cellulose is the most abundant biopolymer renewable natural product in the biosphere. The present study was also focused on identification and screening of cellulose degrading fungi from samples of Water Hyacinth wastes. Dominant isolates of cellulase producing fungi were isolated from growth culture. The samples were grown in Potato Dextrose Agar medium containig 1% carboxymethylcellulose (CMC) sodium salt. Clear zones surrounded the colonies with zone diameter measuring 1.2 to 4.5 cm. On the basis of morphological characteristics the isolates were identified as A. niger . Penicillium spp, Trichoderma spp and Fusarium spp., Chaetomium, Rhizopus but Aspergillus and Trichoderma were more potentially cellulose degrading microfungi deu to more clear zone diameter.