A phytochemical screening revealed the presence of phytoconstituents like flavonoid, anthraquinone and phenol in the callus and suspension culture of Oroxylum indicum (L.) Vent. (Bignoniaceae). The quantitative estimation using TLC technique reflected the presence of two flavonoids viz. baicalein in three fractions (chloroform, ethyl acetate and n-butanol) of callus extract and in intra and extracellular suspension cultures. Protocol was developed for quantification of phytoconstituents by HPLC with methanol: water (70:30) mobile phase and c-18 column in all the three fractions of callus extract. Baicalein was there in all the three callus fractions. Maximum amount of baicalein was found in n-butanol fraction of callus. Cell suspension cultures of O. indicum were established in shake flask system to optimize medium formulation for cell growth and total flavonoid content. Murashige & Skoog"s basal medium (MS) supplemented with BAP (Img L-1), NAA(0.5 mg L-1), 2,4-D (0.1 mg -1 ") and AgN03 (1 mg L-1) was found optimum for growth parameters viz. cell counting, packed cell volume (PCV), fresh weight and dry weight. Total flavonoid content was estimated quantitatively in suspension cultures using UV-vis. spectrophotometer to analyze the effect of different sucrose concentrations (5%, 7% and 8%). Highest total flavonoid content was obtained in MS medium supplemented with lmg 1 ~" BAP, 0.5 mg L-1NAA , 0.1 mg L-12,4-D and 1 mg L-1AgN03 with 7% sucrose. The desired composition of PGRs (lmg L-1 BAP, 0.5 mg L-1 NAA , 0.1 mgL-1 2,4-D), additive 1 mg L-1 AgNO3 with 7% sucrose is selected for intracellular and extracellular production of flavonoid baicalein in bioreactor. Estimated amounts of baicalein were 3.8 mg baicalein g-1DW in IF whereas in EF it was 0.651 mg baicalein g-1 DW. As it is reported for the first time here in we claim five steps for induction of baicalein in intracellular and extracellular production