Dichomitus squalens (P. Karst.) D.A. Reid is a wood rotting Basidiomycete, which produces basidiocarps with poroid hymenophore. The common name of the species, western red rot, indicates the ability of the species to cause a white pocket rot, with the initial decay stage giving a red coloration to the wood followed by the full discoloration of the wood tissue with extensive damage of the structure due to lignin degradation. The species is collected mainly on conifer trees and usually causes major damages to the economically important conifer Pinus ponderosa (Ponderosa Pine). Various types of enzymatic activities related with the ligninocellulolytic system have been shown in liquid cultures of Dichomitus squalens such as endoglucanases, cellobiohydrolases, xylanases, galacturonases and cellobiose dehydrogenases. It has also been shown to produce laccases and manganese peroxidases on both liquid and solid cultures with wheat straw and pine wood chips. Furthermore the species can effectively degrade synthetic dyes in liquid media such as azo and triphenylmethane dyes. The white rot biochemistry makes the species a good candidate for studies on lignin and cellulose degradation. The genome sequencing of Dichomitus squalens will provide more information on the ligninocellulolytic potential of the Basidiomycetes and will give us the tools for extensive studies in this field. Additionally, the genome of this species will give us the opportunity to obtain more information on how the species so efficiently attack the economically important Ponderosa Pine. What is more, the synthetic dye degradation ability of the species is a promising factor for applications on bioremediation studies. Finally, it will reinforce comparative studies with other species of the Polyporales for which the genome is currently available or will be sequenced in the future such as Postia placenta and Trametes versicolor.