<p><i>Cynodon dactylon</i> (L.) Pers., commonly known as Bermuda grass, is a medicinally significant plant recognized for its diverse pharmacological properties. Recent research highlights that its association with endophytic fungi contributes to the synthesis of bioactive secondary metabolites with immense therapeutic and agricultural potential. These fungal endophytes produce a wide spectrum of bioactive compounds, including antimicrobial, antioxidant, anticancer, immunosuppressive, and plant growth-promoting agents, positioning them as valuable resources for drug discovery and sustainable biotechnological applications. Despite their vast potential, the biodiversity, metabolic pathways, and functional significance of endophytic fungi in <i>C. dactylon</i> remain underexplored. This review consolidates the current knowledge on the isolation, identification, and characterization of endophytic fungi from <i>C. dactylon</i>, emphasizing their bioactive metabolites and pharmacological significance. Furthermore, it explores their biotechnological applications and the future scope of utilizing these fungi in pharmaceutical and agricultural advancements. Understanding the metabolic potential of these fungal endophytes can open new avenues for harnessing novel bioactive compounds, contributing to the development of innovative therapeutics and eco-friendly agricultural solutions.</p>