Chitosan, a polymer of D-glucosamine, is known for its antimicrobial activity. However, the physicochemical properties of chitosan depend upon three principal factors, i.e., source of raw material, molecular weight and degree of deacetylation. Here, synthesis and characterization of chitosan oligomers is reported, which were prepared by the nitrous acid deaminative depolymerization of chitosan obtained from Sigma Aldrich and China (industrial grade). Subsequently, their antifungal activities were evaluated against selected basid-iomycetes. The nutrient medium bioassay results show that chitosans and chitosan oligomers affected mycelial growth to different magnitudes. Nevertheless, two of the low-MW chitosan oligomers completely inhibited the growth of all the tested fungi as compared to high-MW chitosan oligomers. Accordingly, antifungal activity increases by decreasing degree of polymerization of chitosan oligomers, which is divergent to literature data. The wood decay trial confirmed the antifungal activity of chitosan oligomers against basid-iomycetes. Chitosan is leachable by water.