Arbuscular mycorrhizal fungi (AMF) have a vital role in natural ecosystems, intensifying nutrient cycling, plant competition, and species interactions. These microbes establish symbiotic relationships with a multitude of plant species, promoting optimal nutrient absorption and plant development. The expansive mycelium network of AMF improves nutrient assimilation, particularly for phosphorus, which is commonly restricted in various ecosystems. AMF also promotes plant competition by empowering specific plant species to gain a competitive edge, thus influencing plant community dynamics. The presence of these microbes can influence the growth, reproductive processes, and overall vitality of plants. Likewise, mycorrhizal connections possess the capacity to enhance inter-species associations, thereby bolstering the overall stability and functioning of the ecological system. Future research should give priority to investigating the mechanisms behind AMF-mediated interactions, assessing the effects of AMF on ecosystem response to global environmental changes, and exploring potential applications in ecosystem restoration and conservation efforts. By promoting plant growth, improving nutrient absorption, and optimizing ecosystem functionality, AMF can be utilized as an effective method for restoring damaged ecosystems and safeguarding endangered plant species.