Four endophytic fungal isolates, Fusarium sp., Mucor sp., Penicillium sp., and Arthrinium sp., were isolated from different parts of Anaphalis contorta and assessed for antifungal activity, extracellular enzyme production, and plant growth promotion abilities in vitro condition. The antifungal activity was evaluated against ten fungal phytopathogens by using the agar dual culture method. All the endophytes have shown moderate to strong antifungal activity against Curvularia lunata, Fusarium oxysporum, Aspergillus niger, Aspergillus flavus, Sclerotium oryzae, Rhizoctonia solani, Alternaria alternata, Colletotrichum capsici, Ustilaginoidea virens, and Alternaria brassicicola. Maximum inhibition was shown by Penicillium sp. (79.52%) against C. lunata. Potential biocontrol agent plays an important role in environment friendly agricultural practices. Qualitative enzyme activity has shown that protease, lipase, amylase, cellulose, and laccase were all produced by Fusarium sp. These enzymes are very important in industries and pharmaceutical applications. Solubilization of inorganic phosphate, NH4, and HCN production was shown by Penicillium sp., which makes the availability of essential elementsto the host plant and well as protects the host plant from pathogens.