Microbial-derived volatiles are ubiquitous in the environment and actively engaged in bio-communication with other organisms. Recently, some volatile-producing endophytes (VPEs), cryptic fungal symbionts persisting in healthy plant tissues, have attracted great attention due to their strong antibiotic activity or production of carbon chains that are identical to many of those found in petroleum, while other fragrant volatiles can be used in the flavoring industries. From an application-oriented and biotechnological point of view, these findings show significant promise for sustainable development of agriculture, forestry, and industry, especially in the control of fruit postharvest diseases, soil-borne pathogen management, and bio-fuel production. In comparison, the ecological importance of VPEs has only rarely been addressed and warrants further exploration. In this review, we summarize the current knowledge and future directions in this fascinating research field, and also highlight the constraints and progresses towards commercialization of VPEs products.