Aerobic decolorization and degradation of azo dyes by both of suspended growing cells and immobilized cells of a newly isolated yeast strain LH-F1 were investigated in this study. A yeast strain LH-F1 capable of aerobically decolorizing various azo dyes (20mg/L) was identified as Magnusiomyces ingens basing on 26SrDNA analysis. Meanwhile, effects of different parameters on decolorization of Acid Red B by both of suspended growing cells and immobilized cells of strain LH-F1 were investigated. Furthermore, possible degradation pathway of the dye was proposed through analyzing metabolic intermediates using UV–Vis and HPLC–MS methods. As far as it is known, it is the first systematic research on a M. ingens strain which is capable of efficiently decolorizing azo dyes under aerobic condition. Additionally, this work would also provide a potentially useful microbial strain LH-F1 for treatment of industrial wastewaters containing azo dyes.