Xylaria is the largest genus of the family Xylariaceae (Xylariales, Sordariomycetes) and presently consists of ca. 300 accepted species of stromatic pyrenomycetes. They are popularly known as dead man's finger, have common distribution in soil, leaf litter, woody litter, and termite mounds. In addition, they also have mutualistic association as endophytes in tropical and temperate plant species. The xylarial stromata constitutes one of the important raw biomaterials in traditional Chinese and other ethnic medicinal systems. The genus Xylaria is a major source of a wide range of bioactive compounds (sesquiterpenoids, terpenoids, cytochalasins, mellein, alkaloids, polyketides, and aromatic compounds). Some of the metabolites of Xylaria deploy antibacterial, antifungal, anticancer, antimalarial, anti-inflammatory, and a-glucosidase inhibitory activities. The metabolites of Xylaria are also known for potential herbicidal, fungicidal, and insecticidal activities. Xylaria is known for the production of many volatile and non-volatile compounds and their volatiles are functional in various pharmaceutical and agricultural applications. This review covers the bioactive metabolites reported from different species of Xylaria and along with their source of origin and biological properties. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022.