Fungi are prodigious producers of compounds derived from amino acids and polyketides - most often tetramic acids, but also pyridones. We have devised a rapid cloning strategy for the discovery of PKS-NRPS genes in filamentous fungi. Recent progress has focussed on the in vivo activity of these PKS-NRPS megasynthetases and the cases of the TENS and FUSS systems from Beauveria bassiana and Fusarium moniliforme, respectively, will be discussed.