Utilization of paper mill sludge from waste treatment plnt for compost have been proven able to improve the quality of land and crop productivity and also uncontaminate the environment. But to produce the compost on a large scale, industry still not yet implemented it because composting process can take time uo to 3 month. Composting of paper mill sludge by fungi Phanerochaeta chrysosporium, Trichoderma harzianum ad Trichoderma reesei have been done atLaboratory scale. The results showed that composting of paper mill sludge by fungsi Treichoderma harzianum have the highest cellulose degradation. Composting process for 28 day, can reach the quality standard of compost.