Fungal terpenes and terpenoids have shown significant therapeutic potential in the treatment of skin diseases, including inflammation, infections, cancer, and pigmentation disorders. This review summarizes the structural characteristics, biosynthesis, and pharmacological activities of fungal terpenes and terpenoids, highlighting their diverse biological effects and potential applications in dermatology. Terpenes and terpenoids are derived from isoprene units and exhibit a wide range of chemical structures, including hemiterpenes, monoterpenes, sesquiterpenes, diterpenes, triterpenes, tetraterpenes, and polyterpenes. These compounds possess anti-inflammatory, antimicrobial, anti-cancer, and tyrosinase-inhibiting properties, making them promising candidates for the development of novel therapeutic agents. Anti-inflammatory effects of fungal terpenes are mediated through the inhibition of pro-inflammatory cytokines, modulation of signaling pathways, and suppression of nitric oxide production. These compounds have demonstrated efficacy in reducing inflammation in skin conditions such as dermatitis, psoriasis, and eczema. Additionally, fungal terpenes exhibit antimicrobial activity against bacteria, fungi, and viruses, offering potential solutions for skin infections. Their anti-cancer properties are attributed to their ability to induce apoptosis, inhibit cell proliferation, and modulate signaling pathways involved in tumor growth. Furthermore, fungal terpenes can inhibit tyrosinase, a key enzyme in melanin synthesis, making them valuable in the treatment of pigmentation disorders. The review also highlights the potential of fungal terpenes in photoprotection, as they may help in reducing UV-induced skin damage. Overall, the diverse pharmacological activities of fungal terpenes and terpenoids suggest their significant role in the development of new therapeutic strategies for various skin diseases. Further research is needed to fully understand their mechanisms of action and optimize their application in dermatological treatments.Fungal terpenes and terpenoids have shown significant therapeutic potential in the treatment of skin diseases, including inflammation, infections, cancer, and pigmentation disorders. This review summarizes the structural characteristics, biosynthesis, and pharmacological activities of fungal terpenes and terpenoids, highlighting their diverse biological effects and potential applications in dermatology. Terpenes and terpenoids are derived from isoprene units and exhibit a wide range of chemical structures, including hemiterpenes, monoterpenes, sesquiterpenes, diterpenes, triterpenes, tetraterpenes, and polyterpenes. These compounds possess anti-inflammatory, antimicrobial, anti-cancer, and tyrosinase-inhibiting properties, making them promising candidates for the development of novel therapeutic agents. Anti-inflammatory effects of fungal terpenes are mediated through the inhibition of pro-inflammatory cytokines, modulation of signaling pathways, and suppression of nitric oxide production. These compounds have demonstrated efficacy in reducing inflammation in skin conditions such as dermatitis, psoriasis, and eczema. Additionally, fungal terpenes exhibit antimicrobial activity against bacteria, fungi, and viruses, offering potential solutions for skin infections. Their anti-cancer properties are attributed to their ability to induce apoptosis, inhibit cell proliferation, and modulate signaling pathways involved in tumor growth. Furthermore, fungal terpenes can inhibit tyrosinase, a key enzyme in melanin synthesis, making them valuable in the treatment of pigmentation disorders. The review also highlights the potential of fungal terpenes in photoprotection, as they may help in reducing UV-induced skin damage. Overall, the diverse pharmacological activities of fungal terpenes and terpenoids suggest their significant role in the development of new therapeutic strategies for various skin diseases. Further research is needed to fully understand their mechanisms of action and optimize their application in dermatological treatments.