Endophytic fungi spend the whole or parts of its life cycle colonizing inter or intracellularly inside the healthy tissues of the host plant. Some species of endophytic fungi have been identified as sources of anticancer, antidiabetic, insecticidal, immunosuppressive and biocontrol compounds. A large number of secondary metabolites have been isolated and characterized from endophytic fungi . Medicinal plants selected i.e. Adhatoda vasica and Rauwalfia serpentina for the study. The samples were surface sterilized by modified method of Dobranic et al. (1995) , fungi isolated and Identified were used for study.