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<i>Scytalidium ganodermophthorum</i> (telomorph: <i>Xylogone ganodermopthora</i>) Kang, Sigler, Lee & Yun is a destructive fungal pathogen that produces a yellow pigment that is used in sustainable product development. Similar pigmenting ascomycetes cause soft rot in woody substrates, however, the decay capabilities of <i>S. ganodermophthorum</i> have not been assessed or related to pigment production. A wood block decay test showed highly variable production of the expected bright yellow pigment and a secondary darker pigment when tested against multiple wood species and nutrient conditions. Microscopic examination showed cell wall erosion typical of type-2 soft rot in wood, although enzymatic analysis did not show detectible levels of endocellulase. Chitinase was detected in plate cultures but not wood cultures, indicating adaption of the fungus to a variety of environmental growth conditions. The high variability of pigmentation in wood cultures suggests that growth of <i>S. ganodermophthorum</i> on liquid media and use of extracted pigment is a superior method for obtaining consistent yellow coloration.