A white-rot fungus, Phlebia sp. MG-60, was applied to the fermentation of high-solid loadings of unbleached hardwood kraft pulp (UHKP) without the addition of commercial cellulase. From 4.7% UHKP, 19.6 g L-1 ethanol was produced, equivalent to 61.7% of the theoretical maximum. The highest ethanol concentration (25.9 g L-1, or 46.7% of the theoretical maximum) was observed in the culture containing 9.1% UHKP. The highest filter paper activity (FPase) was observed in the culture containing 4.7% UHKP, while the production of FPase in the 16.5% UHKP culture was very low. Temporarily removing the silicone plug from Erlenmeyer flasks, which relieved the pressure and allowed a small amount of aeration, improved the yield of ethanol produced from the 9.1% UHKP, which reached as high as 37.3 g L-1. These results indicated that production of cellulase and ensuing saccharification and fermentation by Phlebia sp. MG-60 is affected by water content and benefits from a small amount of aeration.