Endophytic fungi were isolated from healthy tissues of Lippia sidoides Cham. (Verbenaceae), a medicinal plant used as an antiseptic in the northeast of Brazil. From 480 fragments of leaves (240) and stems (240), a total of 203 endophytic fungi were isolated, representing 14 species belonging to the groups Ascomycota, Coelomycetes and Hyphomycetes. Endophytic colonization was greater in leaves (50.4%) than in stems (35.4%). Colletotrichum gloeosporiodes had the maximum colonization frequency (12.3%), followed by Alternaria alternata (7.08%), Guignardia bidwelli (6.87%) and Phomopsis archeri (5.41%). Some species showed specificity for the host tissue: Curvularia pallescens, Dreschlera dematioidea, G. bidwellii, Microascus desmosporum, Peacilomyces variotti, Periconia byssoides and Ulocladium oudemansii were only isolated from leaves while Fusarium lateritium and Phoma tracheiphila were only isolated from stems. Through a preliminary screening and fermentation assay, 16 isolates where found to produce antimicrobial metabolites against bacterial and fungi. The diversity and role of endophytes in medicinal plants is briefly discussed. In conclusion, endophytic fungi from L. sidoides have pharmaceutical potential and can be seen as an attractive source of biologically active compounds.