During last decade there has been noticeable progress in the research of the biology of sapstaining fungi that cause considerable economic losses to forest product industry. The researches generated broad ranges of knowledge on sapstaining fungi regarding their occurrence on conifer wood, taxonomy, nutrient physiology, pigmentation biochemistry and molecular biology, and biological control. Major problematic groups in the sapstain production are Ophiostoma, Ceratocystis, and Leptographium genera. With Ophiostoma as a model, it is found that the type of carbon source is important in the growth and pigment production of sapstaining fungi. The operation of dihydroxy naphthalene (DHN) melanin pathway for black to bluish pigment production has been confirmed in those cosmetic fungi both at biochemical and molecular levels. The development of albino technology using nutrition competition has been shown to be promising as an environmentally friendly biological control method for sapstain control.