There has been renewed interest in the application of endophytic fungi to control phytopathogenic fungi, which cause significant damage to crop health, ultimately leading to losses in agricultural productivity. Endophytic fungi inhibit pathogens via different modes of action—mycoparasitism, competition (for nutrients and ecological niches), antibiosis, and induction of plant defense—thus demonstrating the ability to control a wide range of phytopathogenic fungi in different growth phases and habitats. However, many studies have been conducted under laboratory conditions, and there is a huge lack of studies in which real field testing was performed. Aspergillus, Clonostachys, Coniothyrium, Trichoderma, and Verticillium have been proven to be the most effective fungal biocontrol agents. Trichoderma is regarded as the most promising group in commercial formulations. In this study, we attempted to emphasize the significance of fungal endophytes in controlling phytopathogenic fungi, while reporting recent advances in endophytic biology and application.