Aims: From a survey of submerged culture of edible mushrooms, a high pigment-producing fungus Paecilomyces sinclairii was selected and its optimal culture conditions investigated. Methods and Results: The optimal culture conditions for pigment production were as follows: inoculum age, 3 d; temperature, 25 degreesC; initial pH, 6.0; carbon source, 1.5% (w/v) soluble starch; nitrogen source, 1.5% (w/v) meat peptone. Although addition of 10 mmol l(-1) CaCl2 to the culture medium slightly increased pigment production, most of the bio-elements examined had no notable or detrimental effect on pigment production. Conclusions: Under the optimal conditions obtained in the flask culture tested, a ninefold increase in pigment production (4.4 g l(-1) ) was achieved using a 5-l batch fermenter. Paecilomyces sinclairii secreted water-soluble red pigment into the culture medium. The pigment colour was strongly dependent on the pH of the solution: red at pH 3-4, violet at pH 5-9 and pink at pH 10-12. Significance and Impact of the Study: The high concentration of pigment (4.4 g l(-1) ) produced by P. sinclairii demonstrates the possibility of commercial production of pigment by this strain, considering its relatively high production yield and light stability.