Aflatoxin contamination is a major problem in several food crops. Aflatoxin, a mycotoxin, produced by Aspergillus flavus has gained immense concern in the scientific world because of its tremendous harmful effects. The study was focused to see the effect of oil and aqueous extract of neem (Azadirachta indica) seeds on the growth of Aspergillus and production of aflatoxin by the mold. Various amounts of neem oil $(5;-;50;{mu}l/ml)$ and aqueous extract of neem (5 - 50 mg/ml) were used both in the broth as well as the solid medium. Fungistatic (MIC) and minimal fungicidal concentrations (MFC) were found to be $10;{mu}l/ml$ and $50;{mu}l/ml$ respectively for neem seed oil. At the concentration of $5;{mu}l/ml$ neem oil and 5 mg/ml of aqueous extract, a significant decrease in the aflatoxin content was found in broth medium. Aflatoxin production was totally inhibited at $50;{mu}l/ml$ and 50 mg/ml for neem oil and aqueous extract of neem respectively, in both treatments. There was significant inhibition of mycelium dry weight by the neem seed oil. Mycelial growth was totally inhibited at $20;{mu}l/ml$ of neem seed oil concentration in broth, whereas it was not affected at all by aqueous extract. It can therefore be inferred that the oil and extract from the neem seed leads to inhibition of aflatoxin production while neem seed oil also significantly inhibits the mycelial growth. Neem seed oil thus can be used as potent, natural and easily available anti-aflatoxigenic agent.