Now a day, the use of treated sewage sludge in fertilization of agricultural and a forest area is very common. Several studies have shown that the sewage sludge contains different types of fungi, which can be transferred and distributed from these areas. The present study was reported on the isolation of keratinophilic fungi in sewage sludge from wastewater out lets in the Visakhapatnam is first of its kind. It has also identified some cycloheximideresistant saprophytic fungi were grown in SDA medium. Using the hair-baiting technique, however, M. gypseum, a pathogenic geophilic dermatophyte, was isolated from wastewater treatment plant (Appugarh) samples. In addition, Chrysosporium spp., a keratinophilic and saprophytic fungus, was isolated by this technique Vanbreuseghem’s Hair Bait Technique.