The Calabrien pine (Pinus brutia) wood chips prior to kraft pulping were biologically pre-treated with selected white-rot fungi (Ceriporiopsis subvermispora), which was recorded to be preferentially attacking the lignin component of the wood. The effects of this treatment on beating performance and physical strength of resultant papers were studied in detail. Bio-treated samples showed comparable and, in most cases, higher physico-mechanical properties than those obtained from untreated controls. Under the same beating conditions the bio-treated kraft pulp was noted to have the lower SR° indicating a lower degree of external fibrillation. The paper made from bio-treated kraft pulp has a higher density, tensile property, air permeability and swellability. Furthermore, remarkable energy savings up to 33 % were observed when beating bio-treated kraft pulp. This study contributes to a better understanding of the mechanisms taking place during bio-treatment and the modification processes of cell wall components.