This paper reports regulation of cellulase production in two thermophilic fungi, Melanocarpus sp. MTCC 3922 and Scytalidium thermophilum MTCC 4520. The expression of endoglucanase (EG), avicel adsorbable endoglucanase (AAEG) and beta-glucosidase in both fungi was inducible. Of the different carbon sources tested, rice straw induced maximal levels of cellulase in both fungi. While, the addition of fructose (1%, w/v) to the carboxymethylcellulose (CMC) medium resulted in two-fold increase in endoglucanase production in Melanocarpus sp., however, the addition of ethanol (1%, v/v) resulted in eight-fold-increased expression of endoglucanase in S. thermophilum. The expression profiles of different components of cellulase complex were shown to be co-regulated in S. thermophilum but independently regulated in Melanocarpus sp. (c) 2005 Elsevier Inc. All rights reserved.