A cadmium resistant fungal strain belonging to the genera penicillium was obtained by carrying out successive enrichments from soil samples collected near a metal processing industry in Mumbai. The culture demonstrated resistance to 1.4 mg/ml cadmium. Optimum pH and temperature growth conditions for the isolate were determined. Study of growth pattern of this culture revealed a low specific growth rate, with an extended lag period in the presence of cadmium. Screening for resistance to other heavy metals showed significant tolerance to zinc, lead, nickel and copper. The isolate was found to remove 67%, 84%, and 95 % of cadmium from solution after 48, 72 and 96 hours respectively. This study highlights the important role that penicillium cultures exhibiting high metal tolerance, could play in bioremediation of polluted environments.