Teleocidin B is a terpenoid indole alkaloid with unique structures including indolactam and cyclic terpenoid, and is a strong protein kinase C activator. Its unique structure and bioactivity have drawn vast interest from chemists and biologists, and numerous isolation and bioactivity studies on this molecule have been performed. Recently, its biosynthetic enzymes were identified, and some of their crystal structures were reported. In this review, we describe the isolation of teleocidin derivatives, biosynthetic studies, and detailed analyses of biosynthetic enzymes, to clarify their biosynthetic reactions toward the enzymatic synthesis of bioactive teleocidin compounds.