Endophytic fungi, living in the inner tissues of living plants, have attracted increasing attention among ecologists, taxonomists, chemists and agronomists. They are ubiquitously associated with almost all plants studied to date. Numerous studies have indicated that these fungi have an impressive array of biotechnological potential, such as enzyme production, biocontrol agents, plantgrowth promoting agents, bioremediation, biodegradation, biotransformation, biosynthesis and nutrient cycling. These fungi may represent an underexplored reservoir of novel biological resources for exploitation in the pharmaceutical, industry and agriculture. This review focuses on new findings in isolation methods, biodiversity, ecological distribution and biotechnological potential.