Cordyceps is an entomophagous fungus belonging to class ascomycetes and family Clavicipitaceae of the order Hypocreales and are known to parasitize the larvae, pupae or adults of insects. Of the 300 species reported, so far no other species is considered as medicinally important and costly as Cordyceps sinensis (Berk.) Sacc.. The fungus Cordyceps sinensis (Berk.) Sacc.. is native of high Himalayan mountains in Tibet, Nepal, India and Bhutan, at an altitude ranging from 3,000 to 5,000 m and are commonly known as ‘yartsa-gunbu’ in Tibet and as ‘Keera ghas’ or ‘Keera jhar’ (insect herb) in Indian mountains. In nature, it is parasitic on the larvae of a small moth, (Hepialus armoricanus family Hepialidae, order Lepidoptera). The caterpillar fungus Cordyceps sinensis (Berk.)Sacc.is a well-recognized medicinal mushroom. Cordyceps sinensis (Berk.) Sacc., the world’s most efficient and expensive medicinal mushroom and considered as a traditional Chinese medicine having multiple medicinal and pharmacological properties and also used to treat respiratory and immune disorders, pulmonary diseases, renal, liver and cardiovascular diseases, hyposexuality and hyperlipidema. The pharmacological and medicinal significance of Cordyceps sinensis (Berk.) Sacc. mainly due to its bioactive ingredients i.e. Cordycepin,Adenosine, ergosterol etc.