Progress of chemical industries in the world caused environmental pollutions, in which heavy metal plays an important role on water and soil pollution. On the other hand, the crisis of energy and lack of fossil energy propend up an opportunity for biofuels, especially bioethanol. In this study, different morphology of fungus Mucor indicus were grown in a medium contaminated by two severe heavy metals (lead or nickel), and metal biosorption as well as ethanol production were investigated. These morphologies were manipulated toward purely filamentous (under aerobic condition), mostly filamentous (under anaerobic condition) and purely yeast-like (under anaerobic condition). The presence of lead in the medium increased the weight of produced biomass in all morphologies of M. indicus while increasing nickel concentration at the medium gradually decreased the rate of fungal growth, and the growth was stopped at 150 ppm of nickel. As the results showed, the presence of high concentrations of lead in the medium changed the fungus morphology from mostly filamentous to mostly yeast-like form. On the other hand, presence of nickel at the medium changed the morphology from mostly filamentous to purely yeast-like form. M. indicus has showed a high biosorption capacity for lead and the biosorption capacity increased at high concentrations. Furthermore, M. indicus was cultivated in the presence of 300 ppm of lead in 5 stages which showed a high biosorption capacity for lead at first stage also the biosorption of lead was investigated at the concentration of 300 ppm of lead within 5 stages. However, M. indicus was not able to tolerate nickel, and the fungus growth was decreased with increasing nickel concentration. Also, high concentration of nickel in the media could stop the biosorption. The three morphology of M. indicus showed a high biosorption capacity for lead at all stages whereas the lowest biosorption capacity was %95 at purely filamentous morphology. The maximum volume of biosorption capacity of lead by mostly filamentous morphology were 124 mg g -1 and 45 mg g -1 in first and last step, respectively. As well as, all morphologies of M. indicus with the presence of lead examined within 5 stages for ethanol production. The presence of lead up to 300 mg l -1 decreased the ethanol production yield than fermentation of the medium without presence of any metal. However, at the presence of nickel at the medium, M. indicus ability to product ethanol was much less than the reference. In addition, increasing nickel concentration at the medium caused a considerable reduction in ethanol production and ethanol production stopped at 100 mg l -1 nickel concentration. The results showed that all the morphologies of M.indicus have a high ethanol yield by all morphologies of M. indicus was considerably high in presence of lead and the best yield was obtained for the mostly filamentous morphology 0.46 and 0.35 gr ethanol per gr consumption glucose at the first and last stages for mostly filamentous morphology, respectively. Key words: bioethanol, biosorption, lead, morphology, Mucor indicus, nickel