Among the 123 currently accepted species of the genus Stachybotrys, S. chartarum consistently deserves special attention. This one is the most frequently isolated species of the aforementioned genus and one of the world’s 10 most hazardous fungi. S. chartarum owes its notoriety to the secondary metabolites that are released in the host environment. Interaction of these metabolites with mucous membranes of the respiratory or digestive tract and with the skin can induce necrotic changes and even life-threatening pulmonary or gastrointestinal hemorrhage. Pulmonary hemorrhage was of major concern to the public when, in the period of 1993–1998, this ailment was identified in 138 infants in Cleveland, Ohio, USA, among which 12 cases were fatal. Since this first documented outbreak, the number of publications dealing with the toxigenic properties of this fungus, and even its potential pathogenicity, has rapidly grown. In this comprehensive review we present the most updated information about taxonomy, macro- and micromorphology, biology and ecology of this fungus. Within this work, we focus on the factors that prompted this fungus to be extremely dangerous for people and animals living in moldy conditions, as well as antifungals efficient in its eradication from indoor environments.