Abstract:303 strains of fungi were isolated from the stems of Dracaena cochinchinensis collected from Xishuang banna of Yunnan. The isolated frequency of Fusarium is 52 of total isolation frequency. Secondly, the isolation frequency of Aureobasidium, Cladosporium, Penicillium, Rhizoctonia, Sporotrichum are respectively 5.9, 4.0, 4.0, 3.6 and 3.3. The branches of Dracaena cochinchinensis were inoculated in vivo by some fungi indicated four strains of red Fusarium, F. graminum var. dracaena and so on, play important effect on forming of blood resin in Dracaena cochinchinensis through the effect of yielding blood resin of fungi on Dracaea cochinchinensis. The yield of forming dragon blood resin was increased about 66-120 by them.