The purpose of this work was to study the production of cellobiohydrolase production by a Penicillium funiculosum NCL both in SSF and SMF using different agricultural residues (wheat bran, sugarcane bagasse, rice bran and rice straw) as substrates. Maximum cellobiohydrolase activity (13 U/gds) was produced by the culture grown on wheat bran substrate when compared to the cultures grown on sugarcane baggase, ricebran and rice straw. Time course of cellobiohydrolase production in SSF showed that maximum cellobiohydrolase activity of 13.2 U/gds was obtained in SSF at 144 h. Penicillium funiculosum NCL1 was grown under SSF and SmF conditions with different carbon sources. A maximum level of cellobiohydrolase was produced at 144 h in SSF whereas this strain produced maximum cellobiohydrolase at 96 h in SmF. Among the carbon sources tested wheat bran enhanced the cellobiohydrolase production by P. funiculosum NCL1. This strain produced higher level of cellobiohydrolase at acidic pH of the medium. The effect of various carbon sources on cellobiohydrolase was examined. Avicel was found to be a potent inducer for cellobiohydrolase production by P. funiculosum NCL1.