Milk is essential for human health but it is also considered as a source of aflatoxin M1 contamination if lactating animal(s) is fed on the fungus contaminated feed. Milk contamination with AFM1 is more critical as it constitutes an important part of human diet, particularly for the young ones. Aflatoxin M1 belongs to naturally occurring group of mycotoxins and synthesized by toxicogenic filament fungi of specific genera. The causative fungi favor to grow in a wide range of suitable environmental factors and climatic conditions of humidity and temperature. Biosynthesis of AFM1 is a complex multi enzyme involving process which is governed by clusters of genes. AFM1 contamination poses an incredible burden to health care system around the globe being hepatotoxic, carcinogenic and immunosuppressive in its nature and negatively affects both animals and human that outcome in the form of ailments and economic costs. To minimize the risk of exposure numerous regulatory measures have been established worldwide as an official monitoring approach through standardized analytical methods. Although full scale mitigation of AFM1 contamination in milk is difficult to achieve yet there are several strategies that could be implemented as promising lines of future research. However, still no sole strategy has proven a complete solution to this problem.