Background and Aims <p>Crop plants make significant contribution to food security. However, crop production is often threatened by environmental stresses, soil health, and diseases. They adversely affect the yield of crops, both qualitative and quantitative. The role of plant growth promoting fungi (PGPF) is crucial for plant growth promotion, induction of disease resistance, and restoration of soil health under varied conditions.</p> Methods <p>The functional role of plant growth-promoting fungi, such as phytohormone production, siderophore, mineralization, phosphate solubilization, biocontrol, and enhancement of disease resistance through production of defense enzymes and mitigation of heavy metal, was analyzed to extract the significance and application of PGPF in sustainable agriculture.</p> Results <p>This review highlights the exceptional qualities of PGPF that engaged in sustainable agriculture with the potential to improve plant growth under both biotic and abiotic stresses. Recent advancements such as nanotechnology, biopriming, and bioformulation of plant growth-promoting fungi in terms of applications, sustainability, and long-term viability for the future and sustainable agriculture have also been discussed.</p> Conclusion <p>The outstanding attributes and functions of plant growth-promoting fungi can significantly change the dynamics of agriculture. Furthermore, the recent development in biotechnological and molecular approaches may play an important role in understanding the cellular processes and signaling pathways linked with plant growth promotion and disease management by PGPF.</p>