Rusty root of ginseng has been known as one of the limiting factors in ginseng production in Korea. An attempt was, therefore, made to elucidate biological and chemical natures of the rusty root, and the redox Potential of the ginseng cultivated soils were measured and compared with diseased and non-diseased soils. Reddish discoloration was most frequently observed on the epidermis of ginseng root and the pigments were accumulated in all epidermal cells of the diseased lesions. The lower the redox potential of the ginseng cultivated soil was, the more severe the rusty root was observed. Fe content in the diseased epidermis was 3 times higher than that of healthy one. Organic acids such as oxalic, malonic, succinic, and citric acids were also higher in the mss root than in the healthy one. Thin layer chromatogram of phenolic acid fractions obtained from the epidermal cells of the rusty root of ginseng exhibited 3 to 4 unidentified substances not found in the healthy root. Also lignification of the epidermal cells and the activity of phenylalanine ammonia lyase were greater in the rusty root than the healthy root. Colony formation and conidia production of F. solani, And mycelial growth and sclerotium formation of Sclerotinia sp. isolated from ginseng root were suppressed in a nutritionally minimal medium supplemented with water extract of rusty ginseng root epidermis. It is, therefore, suggested that rusty root of ginseng is caused by unfavorable rhizosphere environmental stress or stresses resulting abnormal metabolism in the root as a selfdefence mechanism of non-specific resistance responses.