Bird's nest fungi, a general term for species in the family Nidulariaceae, are named for their fruiting bodies that resemble bird's nests. Two of their members, Cyathus stercoreus (Schw.) de Toni. and Cyathus striatus Will. ex Pers., are known as medicinal fungi in Chinese medicine. Bird's nest fungi produce a variety of secondary metabolites that provide natural materials for screening and developing medicinal compounds. This review presents a systematic summary of the literature on the secondary metabolites of bird's nest fungi up to January 2023, including 185 compounds, mainly cyathane diterpenoids, with prominently characterized antimicrobial and antineurodegenerative activities. Our work aims to advance our understanding of bird's nest fungi and support studies on their natural product chemistry, pharmacology, and biosynthesis of secondary metabolites.