Mycotoxins are fungal natural products that are toxic to vertebrate animals including humans. Microbes have been identified that enzymatically convert aflatoxin, zearalenone, ochratoxin, patulin, fumonisin, deoxynivalenol, and T-2 toxin to less toxic products. Mycotoxin-degrading fungi and bacteria have been isolated from agricultural soil, infested plant material, and animal digestive tracts. Biotransformation reactions include acetylation, glucosylation, ring cleavage, hydrolysis, deamination, and decarboxylation. Microbial mycotoxin degrading enzymes can be used as feed additives or to decontaminate agricultural commodities. Some detoxification genes have been expressed in plants to limit the pre-harvest mycotoxin production and to protect crop plants from the phytotoxic effects of mycotoxins. Toxin-deficient mutants may be useful in assessing the role of mycotoxins in the ecology of the microorganisms.