The article provides a comprehensive overview of the therapeutic potential of fungal terpenes and terpenoids in treating skin diseases. Terpenes and terpenoids, derived from fungi, exhibit a wide range of biological activities, including anti-inflammatory, antimicrobial, anti-cancer, and photoprotective properties. These compounds have shown significant promise in managing skin conditions such as inflammation, infections, and pigmentation disorders. The article highlights the structural diversity of terpenes and terpenoids, their biogenesis pathways, and their mechanisms of action. Key findings include: 1. **Anti-Inflammatory Activity**: Fungal terpenes and terpenoids, such as those from *Ganoderma lucidum* and *Pholiota populnea*, effectively reduce inflammation by inhibiting pro-inflammatory cytokines and signaling pathways like NF-κB and MAPK. 2. **Antimicrobial Activity**: These compounds demonstrate potent antimicrobial effects against bacteria and fungi, with some showing activity comparable to or superior to conventional antibiotics. Examples include fusidic acid and sesquiterpenoids from *Termitomyces* sp. 3. **Anti-Cancer Effects**: Fungal terpenes, particularly triterpenoids like ganoderic acids, exhibit anti-proliferative and anti-metastatic properties against various cancer types, including melanoma, prostate, and breast cancer. They induce apoptosis, autophagy, and cell cycle arrest. 4. **Inhibition of Tyrosinase**: These compounds can inhibit tyrosinase, a key enzyme in melanin synthesis, making them useful in treating skin pigmentation disorders. Ganoderamanondiol from *G. lucidum* and extracts from *Poria cocos* have shown significant anti-pigmentation effects. 5. **Photoprotective Properties**: Fungal terpenes and terpenoids can protect the skin from UV damage, promoting faster healing and reducing oxidative stress. *Poria cocos* extract has been shown to accelerate wound healing and restore gut microbiome balance. The article emphasizes the potential of fungal terpenes and terpenoids as natural alternatives to conventional treatments, offering new avenues for the development of targeted therapies for skin diseases.The article provides a comprehensive overview of the therapeutic potential of fungal terpenes and terpenoids in treating skin diseases. Terpenes and terpenoids, derived from fungi, exhibit a wide range of biological activities, including anti-inflammatory, antimicrobial, anti-cancer, and photoprotective properties. These compounds have shown significant promise in managing skin conditions such as inflammation, infections, and pigmentation disorders. The article highlights the structural diversity of terpenes and terpenoids, their biogenesis pathways, and their mechanisms of action. Key findings include: 1. **Anti-Inflammatory Activity**: Fungal terpenes and terpenoids, such as those from *Ganoderma lucidum* and *Pholiota populnea*, effectively reduce inflammation by inhibiting pro-inflammatory cytokines and signaling pathways like NF-κB and MAPK. 2. **Antimicrobial Activity**: These compounds demonstrate potent antimicrobial effects against bacteria and fungi, with some showing activity comparable to or superior to conventional antibiotics. Examples include fusidic acid and sesquiterpenoids from *Termitomyces* sp. 3. **Anti-Cancer Effects**: Fungal terpenes, particularly triterpenoids like ganoderic acids, exhibit anti-proliferative and anti-metastatic properties against various cancer types, including melanoma, prostate, and breast cancer. They induce apoptosis, autophagy, and cell cycle arrest. 4. **Inhibition of Tyrosinase**: These compounds can inhibit tyrosinase, a key enzyme in melanin synthesis, making them useful in treating skin pigmentation disorders. Ganoderamanondiol from *G. lucidum* and extracts from *Poria cocos* have shown significant anti-pigmentation effects. 5. **Photoprotective Properties**: Fungal terpenes and terpenoids can protect the skin from UV damage, promoting faster healing and reducing oxidative stress. *Poria cocos* extract has been shown to accelerate wound healing and restore gut microbiome balance. The article emphasizes the potential of fungal terpenes and terpenoids as natural alternatives to conventional treatments, offering new avenues for the development of targeted therapies for skin diseases.