Fungal endophytes are reservoirs of bioactive molecules imparting therapeutic potential to the indigenous medicinal plants. Since new strains of microbial pathogens are evolving with their ability towards drug resistance, herbal phytometabolites are new lead for exploiting their potential in the field of medicine. Ethnobotanical literatures and scientific potential of medicinal plants in traditional medicine has always developed interest for the quest of new bioactive compounds produced by endophytic bacteria and fungi. The endophytic association of medicinal plant imparts therapeutic attributes to the plant metabolites. Endophytes include bacteria, virus and fungi but as per literature fungal endophytes are more promising for exploring the potential compounds, they synthesize in host plants. The occurrence of endophytic association is found in almost all plant species and their roles are well established. This association are present in root, stem and leaves these microbial endophytes enhance growth, yield, stress tolerance, control plant pathogens and manage diseases naturally. In present review, the potential benefits of endophytes such as anti- inflammatory, antimicrobial, anticancer, antidepressants, immunosuppressant, etc. are discussed.