Ganoderma lucidum is a medicinal mushroom that has becn used in the Orient for more than 2000 years. Due to the long time required for basidiocarp formation, attention has recently been given to the use of submerged fermentation for the production of mycelial biomass and its bioactive components, such as polysaccharides and ganoderic acids. VVe review the current State of knowledge about the cultivation of G. lucidum by rnodern fermentation techniques, focussing on the effccts of fermentation conditions and how knowledge of these effccts has been used to dcvelop strategies for improving the production of biomass, polysaccharides and ganoderic acid. We also outline the methods that have been used for biomass and product rccovery and point out potential problems involved in these steps. Studies to date have been almost entirely limited to laboratory scale and much more understanding of the physiology of G. lucidum and its relationship with growth morphology will be necessary before it will be possible to develop economical large scale processe