Diabetes mellitus is one of the most common systemic diseases in the world, and it occurs when the body becomes resistant to insulin or does not make enough insulin. As described by the World Health Organization, diabetes mellitus of all types has exponentially grown in the past decades across the globe and it is estimated to be 629 million by 2045. Despite this alarming prevalence of diabetes mellitus, there is still the lack of harmless preventive medicines. Natural products and compounds obtained from plants, fungi, bacteria, and other living organisms have been used for many decades in folklore medicine to prepare a varied range of natural formulations to treat multiple diseases and illnesses. Endophytic fungi reside inside the plant while causing no harm to the host plant and are relatively less explored as the primary source for the bioactive metabolites such as anticancer, antioxidant, antimicrobial, antidiabetic, and industrial enzymes. This mini-review summarizes the potential of compounds and extracts from endophytic fungi against diabetes mellitus. Not much research has been dedicated in-depth understanding of the role of extracts of endophytic fungi and their effect on diabetes mellitus. Therefore, this article will focus on recent work and warrant further commentaries on the published articles.