The present book is aimed to screen the potent lovastatin producing pair from a variety of solid substrates and fungal organisms. Lovastatin is a potent competitive inhibitor of HMG-CoA reductase, a microsomal enzyme that catalyzes the conversion of the substrates HMG-CoA to mevalonate. This enzyme has a significant role in the synthesis of cholesterol. Besides this, lovastatin has many biomedical applications. Lovastatin yield can be increased through solid state fermentation when compared to submerged fermentation and very few works have been carried oaut for the production of lovastatin through SSF. Substrates not used earlier were used to study the production of lovastatin. The work is planned under the five following objectives: 1.Screening of potential Lovastatin producing Fungal organisms and Solid substrates. 2.Optimizing the Process parameters and Nutrient parameters to increase the Lovastatin producing potential. 3.To immobilize Penicillium funiculosum by entrapment method. 4.Strain Improvement by using Physical and Chemical mutagens for better lovastatin production. 5.Antimicrobial activity of Lovastatin was performed to evaluate the antimicrobial activity.