Bioprospecting of endophytes from understudied ecosystems is a promising source for extracting novel bioactive antifungal metabolites useful for pharmaceutical purposes.In present study twenty nine fungal endophytes and fifteen bacterial endophytes were isolated from the leaves of a well-known medicinal plant i.e. Aloe vera by optimizing suitable surface sterilization protocol. Cross streak and agar overlay methods were followed for preliminary screening for antifungal activity. Positive isolates were investigated for the efficiency of solvents for extraction of antifungal agents followed by secondary screening by agar well diffusion method. Out of all, aqueous extract of one bacterial isolate, Alo NA L 4 exhibited significant antifungal activity against Candida albicans (MCC 1154) and Aspergillus species (MCC 1074). Attempts were also made to partially characterize the antifungal metabolite(s) present in the broth culture using UV, FTIR, HPLC, and GC-MS. The characterization of the Alo NA L 4 extract by FTIR analysis showed the presence of possible functional groups.Active compounds were isolated by HPLC and GC-MS with major and minor peaks observed on the basis of retention time. The analysis of the derivatized extract by GC-MS led to the putative identification of three metabolites as 1,2 dichloro-1-ethoxy ethane (C 4 H 8 Cl 2 O),S methyl methane thiosulphonate (C 2 H 6 O 2 S 2 ),Disulphide dimethyl (C 2 H 6 S 2 ). The endophytic bacterial strain Alo NA L 4, was identified by 16S rRNA gene sequence and phylogenetic