Mycotoxins produced by molds isolated from discolored sun-dried red pepper fruits were determined and the toxicity to animals was also tested by feeding mold-grown unpolished rice to rats. Among the mold species tested, only Alternaria alternata was toxic to experimental animals, while other mold species belonging to the genera of Colletotrichum, Diaporthe, Diaporthopsis, Botryosphereia, Aspergillus and Fusarium were not. Rats fed Alternaria-grown rice lost weight and died within two weeks of feeding period. Succumbed rats during the process of feeding study showed extreme cases of enlargements of stomach, small intestine and liver. Among the 17 Alternaria isolates, 8 species produced considerable amount of tenuazonic acid along with small amounts of other toxins including alternariol and monomethyl ether derivative of alternariol in both red pepper homogenate and unpolished rice. It is therefore advised that red pepper fruits infested by molds during the sun-drying process be discarded to avoid unnoticeable health hazards.