The present invention is directed to a method for producing commercial quantities of baculovirus using a combination of methods involving producing occlusion bodies with infectious baculovirus in caterpillar larvae and large numbers of viral particles with serial passages in cell culture. A two step method was developed by initially producing infectious virus in caterpillar larvae and then using the resultant infectious virus as an inoculum for a limited number of serial passages in cell culture so to produce large amounts of infectious baculovirus.