Endophytic fungi survive a part of their lifespan inter or intracellularly in plants without causing any damage. The group of diversified microorganisms comprising filamentous fungi and yeasts, are also capable of increasing agricultural productivity. Medicinal plants that have been used as a complementary form of medicine since ancient time are a significant source of endophytes in bioprospecting. Each part of the medicinal plant, including the roots, stem, leaves, fruits, flowers, bark, scales, resin canals, and even the meristem, has been screened for endophytes. Endophytic fungi from medicinal plants becomes a rich source of bioactive and chemically unique chemicals. Some of the endophytic fungi such as Acremonium, Alternaria, Apiospora, Aspergillus, Aureobasidium, Bartalinia, Cephalosporium, Chaetomium, Chloridium, Choanephora, Colletotrichum, Cryptosporiopsis, Emericella, Eupenicillium, Eutypella, Eutypella, Fusarium, Gliocladium, Hypoxylon, Paecilomyces, Penicillium, Pestalotiopsis, Pseudomassari, Quercina, Talaromyces, and Trichoderma have been stated from various medicinal plants. Endophytic fungi produce a variety of bioactive metabolites, including terpenoids, steroids, quinones, phenols, coumarins, and others, that come from several metabolic routes. They are used in the pharmaceutical and agrochemical industries for its anticancer, immunomodulatory, antioxidant, antiparasitic, antiviral, antidiabetic, antitubercular, insecticidal activity. In this review endophytic fungi having significant potential in pharmacological field have been listed and summarized. This will give insight for further research on exploring properties of endophytes.