Abstract: Paste-form natto which has a comfortable feeling on the tongue and has little or none of the undesired properties of viscous thread, odor and bitterness of ordinary natto, and a method of producing it in which dried soybeans are dehulled and the kernels sliced to 0.1-5 mm thickness and soaked in 1.0-2.5 times their weight in water, steamed, and lumps of steamed soybean flakes are decomposed during or before seeding with commercial [Bacillus nattol] Bacillus natto. The seeded soybean flakes are fermented aerobically, aged in a chilled room to produce paste-form natto, which had a good feeling on the tongue, does not have the viscous thread, odor and bitterness of ordinary natto. The paste-form natto is packed in plastic or edible containers of any size, chilled or frozen, and shipped to food processing plants. The packed and frozen paste-form natto is not contaminated by micro-organisms and is sanitary.