The effects of endophyte extract and three factors, namely BA, 2,4-D and sucrose, on protocorm initiation were studied by L₉ (3⁴) orthogonal design for the establishment of a rapid micropropagation protocol of Cremastra appendiculata (D. Don.) Makino. The result showed that endophyte extract had significant effect on protocorm induction from pseudobulb adventitious buds as explants. ANOVA further showed that the three factors had significant effects on the production of the string-protocorms induction of Cremastra appendiculata in the orthogonal design as endophyte extract was added in the MS medium. The optimum concentrations of BA, 2,4-D, and sucrose for the protocorm initiation were 2.0 mg l^-1, 0.5 mg l^-1, and 30 g l^-1, respectively in the MS medium supplemented with 10 mg l^-1 endophyte extract and 0.5 g l^-1 PVP (pH 5.8), on which the number of protocorms of micropropagation was increased by ten times compared to the same treatment without the extract added, and on which a single protocorm could multiply 12 times in 6 weeks. The protocorms sprouted and rooted very well (95 %) on 1/2 strength MS medium with 0.5 mg l^-1 NAA and 0.5 mg l^-1 IBA and 10 mg l^-1 endophyte extract. Two species of the endophyte from Cremastra appendiculata were isolated and identified as Chromosporium sp. and Cylindrocarpon sp., which significantly contributed the enhanced micropropagation.