Isolated fungi of Aspergillus clavatus, Rhizopus sp., Zygorinchous sp., Sporotrichum sp., Trichoderma sp.,Penicillium sp. and Curvularia sp. were tested for their retting efficacy on green jute ribbons. In laboratory conditionas well as in field condition, Sporotrichum sp. retted green ribbons of jute (var. CVL-1) in 7 days whereas both Trichoderma sp and Curvularia sp. retted green ribbons in 11 days. In case of retting by Sporotrichum sp., no adverse effect on the fiber bundle strength and fiber yield was observed and according to Pressley Index, fiber strength was found to be 10.82 Ibs/mg and fiber yield was about 2.8 Kg out of 40 Kg green ribbons.