Laccase production by white rot fungus Ganoderma lucidum (Curtis) P. Karst. was investigated through submerged fermentation using effluents of paper and pulp industry as substrate. The effect of variation in culture and nutritional conditions was optimized for industrial scale production of enzyme. Among the optimized parameters incubation period 16 days, inoculums size 13 discs (5 mm), initial pH 5, incubation temperature 30 oC, glucose 4.0 g 50 mL-1 and yeast extract 2 g 50 mL-1 were found the best for laccase synthesis (22.54 U mL-1). Optimum pH and temperature for enzyme activity were 3.0 and 65 oC. The laccsae activity was strongly inhibited by cobalt at 1 mM and 5 mM concentrations.