The current study aimed to examine the in vitro and in vivo antifungal potential of pinocembrin-7-glucoside (P7G). P7G is an antifungal flavanone glycoside isolated from Ficus hirta Vahl. fruit against Penicillium italicum, a causative pathogen of blue mold disease in citrus fruit, and this study elucidates its possible action mechanism. P7G had a prominent mycelial growth inhibitory activity against P. italicum, with an observed half maximal effective concentration, minimum inhibitory concentration and minimum fungicidal concentration of 0.08, 0.2, and 0.8 g/L, respectively. The data from the in vivo test show that P7G significantly reduced blue mold symptoms and disease development of P. italicum in artificially inoculated “Newhall” navel orange. Compared to the control, increases in the cell membrane permeability of P. italicum supernatant and decreases in the intracellular constituent (e.g., soluble protein, reducing sugar, and total lipid) contents of P. italicum mycelia were identified, supporting scanning electron microscopy and transmission electron microscopy observations. Furthermore, a marked decline in both chitin and glucanase contents of P. italicum mycelia treated with P7G was induced by increasing its related degrading enzyme activities, suggesting that the cell wall structure was destroyed. The current study indicated that P7G may be a novel alternative for reducing blue mold by suppressing mycelial growth of P. italicum via a cell membrane/wall-targeting mechanism.