Effects of exogenous veratryl alcohol addition on the growth of basidiomycete Phanerochaete chrysosporium ME-446 and the induction of lignin peroxidase activity were investigated in this study. The organism was grown in ligninolytic (low-nitrogen) culture conditions in which extracellular enzymes are produced. Analyses showed that a statistically significant decrease of cell growth was associated with the veratryl alcohol addition. The effect of veratryl alcohol addition on LiP activity was nearly instantaneous and this effect diminished with culture aging. The extent of this effect was different depending on the time of addition, which led to a speculation that there might be some other effector species which played a role in regulation of lignin peroxidase activity.