A rice contaminating fungus 'Curvularia lunata' yields 'Curvularin', a potent mycotoxin. Experimental Pheohyphomycosis and Mycotoxicosis were observed in albino rats. Spore suspension produced localised lesion; with simultaneous steroid therapy produced lesion in distant organs. Mycotoxin, Curvularin, produced hepatic necrosis.