Mycelial expansion and fruit body development of caterpillar fungi, Cordyceps sobolifera(Hill.) Berk. et Br. was examined on various carbon and nitrogen sources, some substrates with various supplements. Best temperature for the mycelial expansion was $25^{circ}C$, while optimal pH was 7. Glucose and polypeptone were the best sources of carbon and nitrogen, respectively, as well as 1:1 was the best ratio of carbon and nitrogen. The unpolish rice and bean curd lees were used as core substrates combined individually with five various supplements. In substrates based, all the supplements with all combinations were found to exhibit the mycelial growth and fruit body formation. Likewise, yolk was found as a superior supplement and also clarified quite high polysaccharide content in the fruit body.