Plant growth-promoting endophytic fungi with gibberellin-producing ability were isolated from the roots of Carex kobomugi Ohwi, a common sand-dune plant, and bioassayed for plant growth-promotion. A new strain, Arthrinium phaeospermum KACC43901, promoted growth of waito-c rice and Atriplex gemelinii. Analysis of its culture filtrate showed the presence of bioactive GA(1) (0.5 ng/ml), GA(3) (8.8 ng/ml), GA(4) (4.7 ng/ml) and GA(7) (2.2 ng/ml) along with physiologically inactive GA(5) (0.4 ng/ml), GA(9) (0.6 ng/ml), GA(12) (0.4 ng/ml), GA(15) (0.4 ng/ml), GA(19) (0.9 ng/ml) and GA(24) (1.8 ng/ml). The fungal isolate was identified through sequence homology and phylogenetic analysis of 18S rDNA (internal transcribed region).