A solid state fermentation (SSF) method is provided which is effective for both small- and large-scale fungal cultivation. Also provided is SSF media for fungal cultivation. The media preferably contains a carbon source and nitrogen source to provide a carbon to nitrogen ratio of about 5:1 to about 25:1 by weight. The media may also contain a vitamin and an inorganic substance. A preferred SSF medium contains malt extract, yeast extract, peptone, glucose, water, solid base, and calcium carbonate or gypsum. Before propagating fungal mycelia in the SSF medium, the mycelia may be pre-cultivated in a solid culture medium and then in a liquid medium. Although the SSF method can be used in growing most fungi, preferred fungi include Cordyceps sinensis, Ganoderma lucidum, Antrodia camphorata, Trametes versicolor, and Agaricus blazei. The SSF method not only produces high yield of fungi, but also stimulates the production of fungal metabolites, particularly the kinds with pharmaceutical and medicinal activities. Cordyceps sinensis is preferably grown to produce the active compound H1A which is a derivative of ergosterol.