Abstract: Ninety- two species and one species variety belonging to 12 genera were isolated from 30 samples of molasses on 1% glucose ( 10 genera, 22 species and one variety) and 50 % sucrose ( 7, 21 and one ) Czapek`s agar at 25 °C media. Aspergillus, Mucor, Mycosphaerella and Penicillium were the most common genera on the two types of media. From the above genera the most prevalent species were: Aspergillus flavus, A. fumigatus, A. niger, Mycosphaerella tassiana, Penicillium chrysogenum, P. oxalicum and P. purpurogenum. Also, some species were only isolated on 50% sucrose such as Eurotium amstelodami, E. chevalieri E. repens, Humicola fuscoatra, Penicillium aurantiogriseum and P. puberulum. About 65 fungal isolates were isolated from 50% sucrose agar tested for their ability to produce invertase enzyme in liquid medium and 93. 8% of the isolates could produce this enzyme. From the positive isolates, 32 showed high invertase activity, 21 had moderate activity and the remaining 8 isolates were of weak activity. 60 isolates of Aspergillus, Emericella, Eurotium, Mycosphaerella and Penicillium from the preceding study were screened for the presence of their respective mycotoxins. Larva of brine shrimp ( Artema salina L. ) were used for toxicity test of the fungal isolates crude extracts. With 3 isolates out of 60 tested being toxic. Using thin-layer chromatographic technique, 5 different known mycotoxin were detected as aflatoxins : B1, B2, G1, G2 and citrinin.