Degradation of the lignocellulose complex in wood varies depending on the microorganism causing decay. The degradative processes of white-, brown-, and soft-rot fungi as well as different forms of bacterial degradation are presented. Ultrastructural methods were used to elucidate cell-wall alterations that occurred during the various stages of decay. In wood inoculated with the white-rot fungus Ceriporiopsis subvermispora, changes in the cell wall, such as electron-dense zones after staining with uranyl acetate, were evident during incipient stages of decay. The ratio of syringyl:guaiacyl lignin of different woods, different cell types, and even the different layers within a cell wall influenced the type and extent of decay by white-rot fungi. Soft rots caused unique changes in the lignocellulose matrix. The type of wood substrate governed the form (type I or type II) of soft rot that occurred. Brown-rot fungi depolymerized cellulose early in the decay process and degraded cellulose without prior removal of lignin. Bacterial degradation was common in waterlogged woods and three forms, tunneling, erosion and cavitation, are discussed. In addition to an improved understanding of decay processes in living trees and forest products, knowledge of decomposition mechanisms is important to utilize effectively these microorganisms for new industrial bioprocessing technologies. Key words: biodegradation, white rot, brown rot, soft rot, bacterial degradation.