Aims of this study were to isolate endophytes from different parts of hazelnut - Corylus avellana L. to obtain bioactive secondary metabolites and search for the presence of gene region of taxadiene synthase (Ts), a key enzyme in taxol biosynthesis, on selected fungi. Fourteen fungal species were isolated and cultured for the screening studies. The cell-free fermentation broths were extracted with chloroform. The chloroform extracts were tested for cytotoxic activity by MTT method. Based on the activity results and chemical profiles, the isolate identified as Phomopsis amygdali by internal transcribed spaces (ITS) sequence analysis using ITS1 primer was selected for further studies. After large-scale fermentation and purification studies, two major compounds, one of which turned out to be a new secondary metabolite, were isolated and characterized. Structure of the new metabolite was elucidated as (S)-4-butoxy-6-((S)-1- hydroxypentyl)-5,6-dihydro-2H-pyran-2-one by the extensive use of 1D and 2D NMR, and HR-MS, whereas the known compound was identified as (-) pestalotin. Additionally, to evaluate taxol-producing potential of the selected isolate, a PCR amplification study followed by gel electrophoresis analysis was carried out revealing no Ts gene region. (C) 2013 Phytochemical Society of Europe. Published by Elsevier B.V. All rights reserved.