FUNGAL derived bioactive compounds can be beneficial for the human immune system. They act as synergistic or agonistic molecules in the therapy of various human diseases. A total 18 rhizospheric fungi (ABRF1-ABRF18) were identified from rhizospheric soil of the medicinal plants of Achanakmar Biosphere Reserve, Bilaspur, India. The capacity of the fungi to produce metabolites with therapeutic potential was examined. Crude extract from these fungi demonstrated potent in vitro antioxidant activity with various antioxidant assays including Ferric reducing power, Phosphomolybdenum.2,2-diphenyl 1-picrylhydrazyl, and 2,2'-azino-bis3-ethylbenzthiazoline-6-sulfonic. Among different isolated fungi, four, (ABRF1-Fusarium oxysporum, ABRF2-Talaromyces purpureogenus, ABRF3-Penicillium citrinum and ABRF4- Aspergillus carneus) exhibited significant antioxidant potential. Active metabolites of the rhizospheric fungi obtained by extraction with solvents increasing in order of polarity, i.e. Toluene, Chloroform, Ethyl acetate, Methanol, Ethanol and Acetonitrile were examined for antibacterial activity. Variable zones of inhibition against the bacteria Bacillus circulans, Bacillus subtilis, Escherichia coli, Staphylococcus aureus and Ralstonia eutrophae were observed. Further, relatively purified extracts found in the ethyl acetate fraction of column chromatography demonstrated significant antidiabetic activity (up to 93.28±0.12) as measured by α amylase inhibition assay. The secondary metabolites extracted from these species may thus provide potential therapeutic ingredients for pharmaceutical applications worthy of future study.