Although pigment production by Monascus spp. in chemically defined media is well documented (in submerged cultures and free cells), very few information is available about the use of agro-industrial wastes and immobilized cells. In this study immobilized irradiated spores (in sponge cubes) of M. purpureus (24 h age and 0.5 g cubes/50 ml medium) produced high amount of red pigment reached up to 2.32 g/I, after 4 days of incubation, compared with the amount of pigment produced by the free cells (1.84 g/I). Also, potato processing wastewater (PPW) was examined as the main culture medium for red pigment production by this fungus under optimizing culture conditions for repeated batches. The results showed that with irradiated immobilized cells, the maximum amount of red pigment production (1.96 g/I) was recorded at the second batch. Moreover, high reductions of biochemical oxygen demand (BOD); 82.6 % for this waste was obtained during the second batch. The data revealed that very little amount of soluble toxic substances in the extracted sample leading to only 8% dead chicken embryos