Relationships between growth and differentiation and secondary metabolism in microorganisms are reviewed and discussed. The trophophase/idiophase concept is illustrated by patulin biosynthesis. Other features of the biosynthesis of secondary metabolites (such as beta-lactams, mycophenolic acid, rubratoxin, enniatin, tentoxin and citrinin) are also presented. Examples of secondary metabolism in relation to differentiation of selected prokaryotes (bacteria and actinomycetes) are also given. The major part of the review concerns relationships of differentiation and secondary metabolite production in fungi. The following metabolites are discussed: cephalosporin C, brefeldin A, ergot alkaloids, solanopyrone phytotoxins. verruculogen, griseofulvin, penitrems, paxilline, patulin, anthraquinones, mycosporines, P-factor, cyclopenin, cyclopenol, zearalenone, and sex hormones of lower fungi (trisporic acid, antheridiol and sirenin).