Taxol, commercially available as palcitaxel is a potent anticancer drug which has been naturally produced by pacific yew tree. This molecule has been included in the WHO’s list of essential medicines. This paper summarises the different sources of Taxol production, starting from initial isolations from Pacific yew tree which was followed by hairy root cultures and during the last decade, much focus was on endophytes as potential sources for Taxol production. Further, this review specifically talks about the medicinal plant Terminalia arjuna and its medicinal values with regard to its endophytes and their capability of producing Taxol. The process of initial screening, purification and media optimization for increasing the yields of secondary metabolites is also discussed.