BT2, a newly isolated endophytic fungus from Taxus chinensis var. mairei, was observed to produce Taxol. Besides Taxol, a potent anticancer drug, BT2 could also yield taxane baccatin III, which was an important intermediate for Taxol and semi-synthesis of Taxol in industry. The isolation of such a fungusmay provide a promising alterative approach to produce Taxol, and BT2 can serve as a potential material for fungus engineering to improve Taxol productio