Isolates of Phyllosticta arecae from different localities of Uttar Kannada and Shimoga districts varied in morphology, cultural characters, virulence and production of toxic metabolities. Eight isolates obtained were categorised into three groups as highly virulent, moderately virulent and less virulent. Tomato cuttings dipped in culture filtrates of A, C and G isolates exhibited severe symptoms and inhibited the germination of wheat seeds to the maximum extent indicating their ability to produce more toxin. Maximum production of toxic metabolites was supported by mannitol followed by maltose and glucose