Project was planned to study the optimization of production medium, kinetic and characterization of native and entrapped laccase from Pleurotus ostreatus. Production of laccase employing Pleurotus ostreatus during dye decolorization was optimized using different media composition.Purified laccase was immobilized in xerogels using various ratios of PTMOS and TMOS. All immobilized enzyme showed better thermostability and mesostability than native laccase. Although the best method of immobilization might differ from enzyme to enzyme,from application to application and from carrier to carrier, depending on the peculiarities of each specific application, criteria for assessing the robustness of the immobilized enzymes remain the same. Industrial immobilized enzymes must be highly active (high activity in a unit of volume, U g–1 or mL–1), highly selective (to reduce side reactions), highly stable (to reduce cost by effective reuse), cost-effective (low cost contribution thus economically attractive), safe to use (to meet safety regulations) and innovative (for recognition as intellectual property).