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Bioremediation of Cd- (cadmium) contaminated soil using Cd-tolerant fungus is considered an eco-friendly and cost-effective technique. In this study, we isolated one fungal strain that was hyper-tolerant to Cd from a highly polluted river and conducted pot experiments to evaluate its effects on bioremediation. We found that the fungal strain belonging to the genus, <i>Purpureocillium lilacinum</i>, tolerated 12,000 mg/L Cd. SEM manifested that Cd can be bioaccumulated on the crumpled mycelial surface, generating plenty of metal precipitation particles. In addition, pot experiments showed that the inoculation of <i>P. lilacinum</i> N1 could reduce the total Cd content in soil (2.09% in low contaminated soil and 12.56% in high contaminated soil) and greatly promote plant growth (2.16~3.13 times). Although the Cd concentration of plants was increased by 112.8% in low contaminated soil and decreased by 9.5% in highly contaminated soil with the inoculation of <i>P. lilacinum</i> N1, the total uptake of Cd by plants was greatly improved—1.84~3.6 times higher than that in CK groups. All our results suggest that <i>P. lilacinum</i> N1 is a valuable candidate for the bioremediation of Cd-contaminated soils because of its dual effects on the total Cd content in soil and Cd uptake in plants.