Natural pigments production is one of the important approaches recently for being natural and having therapeutic properties. Monscuspurpureuswas isolated from imported red yeast rice, characterized and propagated on local rice as solid state culture .Morphological characteristics which includes colonies, ascosporous and conidial stage were used to identify the fungi besides its red pigment production. Red pigment was produced using 10% of seed culture of Monescuspurpureus, incubated at 30˚Cfor 20 days. Pigment was extracted and its concentration was determined spectrophotometrically at 510nm.The effect of nitrogen source, incubation period, temperature and pH of fermentation on yield of the resultant pigment were studied. The colonies color on potato dextrose agar was white in the beginning but turned orange to red later on, the diameter of Ascospore was 5.2×5µm, slightly orange and smooth. The best sterilizer for rice grains prior to inoculation was 5% solution of sodium hypochlorite. Rice grains were better than corn as substrate for pigment production, the yield of pigment was doubled with rice grain as compared to corn. The optimum pigment productions were obtained from rice supplemented with glucose as carbon source as compared to fructose, xylose or sucrose. The best nitrogen source for rice supplement was yeast extract as compare to pepton, malt extract, ammonium sulphate or ammonium chloride. The variations between nitrogen sources are not high therefore their availability and prices should be considered for commercial applications. Red pigment was started to appear after 4 days of incubation but the maximum yield was attended after 20 days. There was no pigment production neither at 10˚C nor at 50˚C while the maximum pigment yielding was at 30˚C. The optimum pH for pigment production was at 6-6.5. Natural pigment production from Monscuspurpureus is promising area to produce attractive red pigment for food industries applications.