The microbial transformation of sclareolide (1) by Curvularia lunata afforded five oxidized metabolites identified as 3-ketosclareolide (2), 1 beta-hydroxysclareolide (3), 3 beta-hydroxysclareolide (4), 1 alpha,3 beta-dihydroxysclareolide (5), and 1 beta,3 beta-dihydroxysclareolide (6). Fermentations of 1 with Aspergillus niger also produced metabolites 2-6. Metabolites 2-5 were obtained by fermention with Gibberella fujikuroii, while fermentation with Fusarium lini afforded metabolites 4 and 5.