Abstract: The present study was carried out for chemopreventive effect of fungal taxol derived from an endophytic fungus, Pestalotiopsis pauciseta VM1 isolated from a medicinal plant Tabebuia pentaphylla Hemsl. The biochemical parameters like blood urea, serum uric acid, creatinine, haemoglobin, protein, tryglycerides, total cholesterol and phospholipids were estimated in control and experimental groups. Based on the results, the fungal taxol were found to be best against 7, 12 dimethyl benz (a) anthracene induced mammary tumors in Sprague Dawley rats.