Drug metabolism studies constitute an important and necessary step in the evaluation of drug efficacy and safety. In vivo drug metabolism studies suffer from many disadvantages. Hence there is a rise in validation of in vitro microbial models. This review describes the transformation studies of drugs by the fungus, Cunninghamella and correlating them with the metabolism/biotransformation in animal systems and providing technical methods to develop microbial models. Emphasis is laid on the potential of Cunninghamella fungus to mimic mammalian drug biotransformations and to use as in vitro model for drug metabolism studies and for further toxicological and pharmacological studies of metabolites.