The use of fungi for the production of commercial products is ancient, but it has increased rapidly over the last 50 years. Fungi are morphologically complex organisms, differing in structure at different times in their life cycle, differing in form between surface and submerged growth, differing also with the nature of the growth medium and physical environment. Many genes and physiological mechanisms are involved in the process of morphogenesis. In submerged culture, a large number of factors contribute to the development of any particular morphological form. Factors affecting morphology include the type and concentration of carbon substrate, levels of nitrogen and phosphate, trace minerals, dissolved oxygen and carbon dioxide, pH and temperature. Physical factors affecting morphology include fermenter geometry, agitation systems, rheology and the culture modes, whether batch, fed-batch or continuous. In many cases, particular morphological forms achieve maximum performance. It is a very difficult task to deduce unequivocal general relationships between process variables, product formation and fungal morphology since too many parameters influence these interrelationships and the role of many of them is still not fully understood. The use of automatic image analysis systems during the last decade proved an invaluable tool for characterizing complex mycelial morphologies, physiological states and relationships between morphology and productivity. Quantified morphological information can be used to build morphologically structured models of predictive value. The mathematical modeling of the growth and process performance has led to improved design and operation of mycelial fermentations and has improved the ability of scientists to translate laboratory observations into commercial practice. However, it is still necessary to develop improved and new experimental techniques for understanding phenomena such as the mechanisms of mycelial fragmentation and non-destructive measurement of concentration profiles in mycelial aggregates. This would allow the establishment of a process control on a physiological basis. This review is focused on the factors influencing the fungal morphology and metabolite production in submerged culture.