Dyes used in various industries are discharged into the environment and pose major environmental concern. In the present study, fungal isolate Aspergillus lentulus was utilized for the treatment of various dyes, dye mixtures and dye containing effluent in dual modes, bioaccumulation (employing growing biomass) and biosorption (employing pre-cultivated biomass). The effect of dye toxicity on the growth of the fungal isolate was studied through phase contrast and scanning electron microscopy. Dye biosorption was studied using first and second-order kinetic models. Effects of factors influencing adsorption and isotherm studies were also conducted. During bioaccumulation, good removal was obtained for anionic dyes (100 mg/l), viz. Acid Navy Blue, Fast Red A and Orange-HF dye (99.4 %, 98.8 % and 98.7 %, respectively) in 48 h. Cationic dyes (10 mg/l), viz. Rhodamine B and Methylene Blue, had low removal efficiency (80.3 % [48 h] and 92.7 % [144 h], respectively) as compared to anionic dyes. In addition to this, fungal isolate showed toxicity response towards Methylene Blue by producing larger aggregates of fungal pellets. To overcome the limitations of bioaccumulation, dye removal in biosorption mode was studied. In this mode, significant removal was observed for anionic (96.7–94.3 %) and cationic (35.4–90.9 %) dyes in 24 h. The removal of three anionic dyes and Rhodamine B followed first-order kinetic model whereas removal of Methylene Blue followed second-order kinetic model. Overall, fungal isolate could remove more than 90 % dye from different dye mixtures in bioaccumulation mode and more than 70 % dye in biosorption mode. Moreover, significant color removal from handmade paper unit effluent in bioaccumulation mode (86.4 %) as well as in biosorption mode (77.1 %) was obtained within 24 h. This study validates the potential of fungal isolate, A. lentulus, to be used as the primary organism for treating dye containing wastewater.