Annullatins from Cordyceps annullata are alkylated aromatic polyketides including annullatin D with a fused dihydrobenzofuran lactone ring system. Here, we report the identification of a silent biosynthetic gene cluster for annullatins from Penicillium roqueforti by heterologous expression in Aspergillus nidulans, gene deletion, and feeding experiments as well as by biochemical characterization. The polyketide core structure is consecutively modified by hydroxylation and prenylation. A berberine bridge enzyme-like protein catalyzes the final step, an oxidative lactonization between two hydroxyl groups, to form (2S, 9S)annullatin D.