Production of lipases by three thermophilic fungi, Thermomyces lanuginosus, Talaromyces luteus and Rhizomucor pusillus was investigated, influence of substratum, pH, temperature, carbon and nitrogen sources on lipase production was also studied. All the three fungi under study produced good amount of lipase constitutively. Lipase production was maximum at 45ºC and it was thermostable.