The isolation, identification and characterization of a novel huperzine A (HupA)-producing fungal strain Rsp5.2 isolated from Huperzia serrata (Thunb. ex Murray) Trev. in Vietnam. The fifty-eight endophytic fungi were recovered from roots of natural H. serrata in Lao Cai province of northern Vietnam and screened for HupA-producing by thin-layer chromatography (TLC). The only one of the 58 strains, Rsp5.2, could produce HupA. The amount of HupA produced by Rsp5.2 was quantified to be 19.45 mu g g(-1) dried mycelium by high-performance liquid chromatography (HPLC). Acetylcholine esterase (AchE) inhibition (IC50) of the crude HupA extract from Rsp5.2 fermentation broth was 2.849 +/- 0.0026 mu g mL(-1). The fungus was identified as Fusarium sp. Rsp5.2 by morphological characteristics and Internal Transcribed Spacer (ITS) sequences. This is the first report of Fusarium sp. as a HupA-producing endophyte isolated from H. serrata.