Pigments play a very significant role in all aspects of life. They find application in a variety of industries like food industries, textile industries, pharmaceutical industries etc. One of the major reasons behind the increasing market interest for microbial pigments is their eco-friendly nature and their compatibility with the living. Besides this, they also reported to impart many additional benefits due to their anti-bacterial, anti-oxidant, antimalarial and anti-biotic properties etc. In the present investigation, a fungal isolate DMMS-1, isolated from the soil sample, was seen to produce red colored pigment. The conditions for higher pigment production were optimized. It was observed that the temperature of 37°C, inoculum size of 3 plugs (5 mm diameter), malt extract as carbon source, pH of and the shaking incubation (110 rpm) resulted in enhancement of pigment production.