Pollutant-induced abnormal functioning of phagocytes and associated consequences were studied in freshwater catfish Heteropneustes fossilis (Bloch). Fish were exposed to effluent collected from bleached kraft type of paper mill at the concentration levels of 0.5, 1 and 2% for 15, 30, 60 and 90 days. Respiratory burst activity of peritoneal and head kidney phagocytes of exposed fish was measured by nitroblue tetrazolium reduction assay. Lipid peroxidation (LPO) was estimated in liver, gill and kidney of fish by measuring thiobarbituric acid reaction substances. It was observed that the phagocyte-activating xenobiotics of effluent induced an increase in the respiratory burst activity in phagocytes. The induction of respiratory burst activity was concomitantly associated with an increase in the peroxidative damage of tissues. The tissues most affected were kidney and gills. The change in LPO values in the gills of exposed fish was concentration- and time-dependent, showing significant increases (P<0.05 to <0.001) in all the exposed groups as compared with control fish. An almost similar pattern of LPO was observed in head kidney tissue (P<0.05 to <0.001). As regards liver, increase in LPO was not widespread, except at 0.5% for 90 days (P<0.05). In fact, reduced rates of LPO were observed in the livers of some groups. The results of respiratory burst corroborate with the phagocytic activation as well as with the extent of lipid peroxidation in the tissues, showing high population of circulatory phagocytes. Our results demonstrate that fish of polluted water are subjected to oxidative stress of multifarious dimensions.