This paper seeks to review the potential treatment of diabetes with a focus on novel therapeutic effects produced by endophytic fungi that are associated with certain plants. Diabetes is a growing concern among the Indian population, and as a result, there has been an increasing amount of research done to discover new drugs and remedies. South India, with its unique geographical terrain is conducive for the growth of several indigenous plants that have medicinal properties. These plants are known to also be associated with some fungal strains that have metabolites with potentially anti-diabetic properties. This review looks at such plants, and how best to grow endophytic fungi accordingly.