Cordyceps species are diverse and grow worldwide from larval to adult stages of a range of insects. They are traditionally regarded as medicinal mushrooms in Asia for their immune-enhancing properties. Different species of Cordyceps are being cultivated in large scale to fulfill the demand of public consumption as supplementary health food or immune booster. Cultivation of Cordyceps fruiting bodies is a complex process and a controlled environment of temperature, light, humidity etc. along with appropriate medium is a prerequisite for regular, stable fruiting process. Besides environmental factors, recent molecular studies have shown the role of genetic factors that control normal fruiting body production of Cordyceps. Recent progress in our understanding of Cordyceps fruiting in laboratory condition is discussed with some prospect of better fruiting body production of Cordyceps spp. in future.