- Various species of saprobic fungi and mushroom have been reported to produce specific enzyme to degrade synthetic melanin and hypothesized that fungal enzyme could produce melanolytic activity which may potential application in cosmetics. However, endophytic fungi have never been reported for its application in melanolytic activity. This study aimed to investigate an alternative approach of melanin lightening through activity of lignin peroxidase (LiP) from endophytic fungi, which may help to avoid the adverse effects of chemical to skin. The 332 endophytic fungi isolated from 21 plant species were screened for LiP activity using traditional azure B agar medium together with a new introduce azure B liquid medium methods. The production of LiP with agar medium method was observed as clearance diameter of blue colored medium around fungal colony, while %decolorization of azure B was measured for analysis of LiP production under liquid medium method. A positive result of new screening method was interpreted from an occurrence of ≥70% azure B decolorization. All positive strains were subjected to produce LiP in liquid medium, assayed for enzyme activity, and assessed melanin decolorization ability. Fourteen endophytyes were signified as strongly positive since they showed ≥95% azure B decolorization in liquid medium screening methods. Of these, isolate MP03 expressed highest activity of LiP and when cultured under optimized conditions, enzyme activity was expressed as high as 439 units/ml which able to reduced melanin pigment about 36%. This study demonstrated that LiP from endophytic fungi may possible to use as melanin lightening agent in whitening-cosmetic formulation. This approach appears to be importance because the enzyme is a biological origin and will be more acceptable for cosmetic purpose than chemical formulations.