Oil palm (Elaeis guineensis Jacq.) production in Southeast Asia, particularly in Malaysia and Indonesia, is continuously threatened by basidiomycete fungi of the genus Ganoderma. The species Ganoderma boninense Pat. is the primary cause of the devastating disease affecting the crop. Infected oil palm residues left during replanting serve as a critical inoculum source, via root contact facilitating soil-borne transmission. Managing these residues is crucial, especially under Malaysia’s zero-burning policy. This study evaluated the biodegradation of Ganoderma-infected oil palm biomass using Trametes lactinea strain GanoBF1 combined with urea (nitrogen fertilizer) and green net coverings. Covering the cut discs with green nets retained moisture, promoting fungal colonization and vertical penetration of the fungus, which accelerated biodegradation. The present technology indicated that the initial approach of covering the discs with green nets retained moisture, which eventually facilitated the vertical penetration of the fungi and was a key parameter in the degradation of the oil palm cut discs. Initial wood moisture content significantly influenced degradation rates, with wet stumps showing higher weight loss than dry stumps. After 12 months, discs treated with T. lactinea GanoBF1, green net, and nitrogen (T1) achieved the highest mass loss percentages (upper: 49%; lower: 64%), followed by T. lactinea GanoBF1 only (T2) with 36% and 44%, respectively. Control discs exhibited only 17% (upper) and 26% (lower) mass loss. Penetrometer tests showed significantly lower impact resistance for T1-treated discs by the sixth month, indicating advanced degradation. Visual observations corroborated these results, with T1-treated discs exhibiting the highest level of decomposition. The efficacy of T. lactinea GanoBF1 was further tested as a stump treatment under a seedling baiting trial. T. lactinea GanoBF1 demonstrated effective fungal colonization and biodegradation over 18 months. The initial colonization was favoured by hot and dry conditions, as observed in open nursery trials. However, canopy coverage slowed fungal establishment in the field. Notably, no foliar infection was observed in treated bait seedlings, after 18 months of biodegradation. These findings confirm the efficacy of T. lactinea GanoBF1 in rapidly colonizing and degrading diseased oil palm stumps under suitable environmental conditions, offering a sustainable solution for residue management. This approach offers a promising, sustainable solution for managing Ganoderma-infected residues in oil palm plantations while adhering to zero-burning practices.