In recent times the demand for conventional medicines is rising day by day in urban cities of the globe. Different sorts of folk meds are widely employed in various therapies by the global communities. Excessive exploration and exploitation of folk meds has alarmingly damaged the ecological diversity around the world. The folk meds are largely created through plants animals and even microbes. In this study an expensive conventional medicinal fungi often alluded to as ‘caterpillar fungi’ that is found in the Himalayan region has been evaluated for its sorted traits pertaining to its origin, morphology, lifecycle, therapeutics, bio-molecules and its trade values. This fungus has been an integral compound of traditional medicines in Tibet, Nepal, Bhutan, India and China. It was inferenced in this study that the hunt for this Himalayan medicinal treasure has raised tremendously. In recent times studies reveal that the caterpillar fungus has been widely employed as a nutritional supplement or tonic and as a herbal medication. The volume of this medicinal fungus is decreasing due to it’s over exploitation. Over exploration of this pricey med is contributing towards its degradation. It was evaluated through this investigation, that the caterpillar fungi possesses rich aboriginal medicinal traits that has resulted in its excessive exploration and even smuggling in the states of its origin. It is concluded in this study that, strict measures must be taken by the global states to safeguard this valuable fungi that could be loaded with medicinal properties to cure many chronic health ailments. It is inferred in this study that lack of proper concerns on this significant fungi has labelled this fungi under vulnerable species.