Arbuscular mycorrhizal fungi are ubiquitous in soil habitats and form beneficial symbiosis with the roots of angiosperms and other plants. Most terrestrial plants associate with root colonizing mycorrhizal fungi, which improve the fitness of both the fungal and plant associates. Distribution and abundance of AM fungi vary greatly among different sites like natural and manmade ecosystems. Natural soil offers consortium of indigenous mycorrhizal fungi and often used as source of inoculam. AM fungi can be produced on a large scale by pot culture technique. It was suggested for the commercial production of AM fungi in agricultural field management. They are also environment friendly fertilizers and do not cause the pollution of any sort.