Bacillus licheniformis and products produced by the microorganism are inhibitory to the growth of numerous other microorganisms in the environment. The low- molecular- mass microbial secondary metabolites produced by Bacillus licheniformis inhibit the growth of other microorganisms at low concentration. B. licheniformis has been shown to be inhibitory to the growth of various fungi and has recently been investigated for its use as a biocontrol agent of several fungal pathogens.  Therefore, in the present study Bacillus licheniformis was further studied in detail for its ability to produce antifungal compound. Mutant and wild strain of B. licheniformis were used for production of antifungal compound, the antifungal compound produced by 5-Bromo uracil and Ethidium Bromide mutant isolate separately showed broad spectrum activity against the test organisms Alternaria alternata, Helminthosporium sp., Fusarium moniliforme, Aspergillus niger, Rhizoctonia solani. Out of these five fungal plant pathogen fusarium species was more sensitive to antifungal compound produced by B. licheniformis.