The effects of nitrogen, phosphate in modified B5 medium and cell immobilization on cell growth and taxol production were investigated using cell cultures of Taxus cuspidata. The ratio of nitrate to ammonium was found to be an important parameter. The ratio of 1 increased taxol production 10-fold, compared to the original ratio of 20 in modified B5 medium. Reducing phosphate concentration inhibited cell growth, but increased taxol production noticeably. Immobilized cells produced a taxol concentration of ∼120 g/ℓ.