Fusarium graminearum is a fungal pathogen of cereal crops (e.g., wheat, barley, maize) and produces a number of mycotoxins, including 15-acetyldeoxynivalenol, butenolide, zearalenone, and culmorin. To identify a biosynthetic gene for the culmorin pathway, an expressed-sequence-tag database was examined for terpene cyclase genes. A gene designated CLM1 was expressed under trichothecene-inducing conditions. Expression of CLM1 in yeast (Saccharomyces cerevisiae) resulted in the production of a sesquiterpene alcohol, longiborneol, which has the same ring structure as culmorin. Gene disruption and add-back experiments in F. graminearum showed that CLM1 was required for culmorin biosynthesis. CLM1 gene disruptants were able to convert exogenously added longiborneol to culmorin. Longiborneol accumulated transiently in culmorin-producing strains. The results indicate that CLM1 encodes a longiborneol synthase and is required for culmorin biosynthesis in F. graminearum.