Griseofulvin is an antifungal antibiotic and is used for the treatment of mycotic diseases of human, veterinary and plant systems. It is synthesised by many species of Penicillium. The exploitation of fermentation process plays a vital role in the industrial applications. This leads to techno- economic feasibility of the processes. The present review mainly discusses on the production of griseofulvin in soil, in plants and by various micro- organisms. This communication also summarises the various factors which influence the griseofulvin production and strain improvement by mutation for enhanced production.