Propolis is a natural product collected by honeybee workers. The product was tested for its antifungal effect against Aspergillus versicolor ATCC 12996 as well as biosynthesis of sterigmatocystin during ripening of Egyptian Ras cheese. The use of different concentrations of aqueous propolis extract 250, 500 and 1000 part per million (ppm) on the cheese surface was investigated. Mould growth and toxin production were completely inhibited at the highest concentration 1000 ppm, while the lower concentrations exhibited definite fungistatic activity during 90 days of ripening. Control cheese demonstrated that the amount of sterigmatocystin produced was proportional to the growth of Asp. versicolor during three months of ripening. It could be concluded that propolis concentration of 1000 ppm could prevent mould growth and sterigmatocystin production in Ras cheese. The economic as well as the public health importance of propolis as a natural preservative in cheese manufacture is discussed.