The use of plant-derived nanoparticles (PDNPs) as a novel solution to fungal infection has been developed based on a recent, alternative, and sustainable approach to extracting substances from underused plant resources. Phytochemicals present in these plants are natural, efficient agents that reduce and stabilize without the aid of toxic or costly chemicals. This is a green strategy that is beneficial. PDNPs show pronounced antifungal effects by various mechanisms, such as interference with fungal cell membranes, oxidative stress induction, and biofilm formation inhibition. The increasing prevalence of drug-resistant fungal infections combined with the toxicity, high cost, and resistance of traditional antifungal medications implements the urgency of the necessity of alternative therapeutic approaches. The use of PDNPs, which is a part of green nanotechnology, offers a promising solution because it is more biocompatible, less toxic, and has fewer chances of developing resistance. Moreover, the importance of preserving the underutilized plant species through valorization not only helps to discover new bioactive substances but also encourages the preservation of biodiversity and sustainable use of resources. The chapter brings out the modern developments, contemporary issues, and future outlooks of PDNPs as second-generation antifungal agents to be used both in agriculture and healthcare.