Abstract: An outbreak of a syndrome of unknown etiology associated with the feeding of moldy maize grain and green fodder to goat in a herd of male 3853 goats for sale for the Dashahara festival during the month of October 2010 in Kathmandu valley. In a period of 10 days 500 goats suddenly became ill with symptoms of anorexia, apathy, diarrhea and ruminal stasis. On clinical examination these goats were provisionally diagnosed with sudden illness and moldy corn/fodder poisoning was suspected. They were treated with biolive, tetrachlor, polyte, C-lyte, stress care and antidegnala liquor but 250 goats died. Necrosis of the fore stomach mucosa was the most characteristic gross pathological change. Clinical pathological findings included mild focal erosions to severe, diffuse, coagulative necrosis of the mucosa in the rumen, reticulum, omasum, congestion and hemorrhages in the abomasum. Liver with shrunken appearance and pale to yellowish discoloration with bile filled distended bladder, pin point hemorrhage in kidney, intestine with excessive mucus. On mycological and microbiological examination of tissue samples from post-mortem of dead goat on respective medium revealed the growth of fungal pathogens like Penicillium sp. with Staphylococcus. These results provide circumstantial evidence that feeding on moldy maize grain and green fodder leaves infested with Penicillium may cause outbreaks of systemic mycosis in goats.