Many microorganisms, especially filamentous fungi, could efficiently degrade lignocellulose, which is a complex carbohydrate and aromatic polymers in plant cell wall and is the most abundant natural materials on earth.We have isolated a fungus strain Z5, identified as Aspergillusfumigatus, from the compost heaps, of which we have sequenced the 29-million base-pair genome using a 454 genome sequencing approach.The Aspergillus fumigatus Z5 has a fantastic capacity to degrade plant cell wall polysaccharides.Genome analysis reveals an impressive array of genes encoding secreted cellulases, hemicellulases, pectinases that cooperate in lignocellulosic biomass degradation.We also sequenced Z5 transcriptome induced by different substrates (sucrose, oat spelt xylan, Avicel 101 and rice straw).Our analysis of genome and transcriptome, coupled with sequence data, provide a roadmap for biomass utilization and industrial application as a gene resource and/or a host for protein expression.