Investigations on the impact of pellet size on the cellular oxygen uptake and accumulation of ganoderic acid (GA) suggested the favorable effect of oxygen limitation on GA formation by the higher fungus Ganoderma lucidum. A two-stage fermentation process was thus proposed for enhanced GA production by combining conventional shake-flask fermentation with static culture. A high cell density of 20.9 g of DW/L (DW = dry cell weight) was achieved through a 4-day shake-flask fermentation followed by a 12-day static culture. A change in the cell morphology and a decrease in the sugar consumption rate were observed during the static culture. The GA production in the new two-stage process was considerably enhanced with its content increased from 1.36 (control) to 3.19 mg/100 mg of DW, which was much higher than previously observed.