Significance
New antifungal compounds are needed due to an increasing incidence of invasive fungal infections and resistance to many currently used drugs. Here we show that cyanobacteria are a rich source of antifungal compounds such as glycosylated lipopeptides, called hassallidins, which are commonly produced by filamentous nitrogen-fixing cyanobacteria. A diverse group of hassallidins and their complex nonribosomal biosynthesis were characterized in detail. Hassallidins and their previously unidentified biosynthetic enzymes offer new material for drug development. In addition, these compounds may have an ecological role in protecting cyanobacteria from parasitic fungi.