Plant endophytic fungi are an important part of plant microecosystems and a natural resource for human survival and development. Various bioactive natural products produced by plant endophytic fungi show promising prospects in biopharmacy, agricultural production, and industrial fermentation. Terpenoids, the most numerous and structurally diverse natural products from endophytic fungi, possess a broad range of biological activities and huge potential for drug development. It is critically significant for ecological and economic benefits to develop their activities. This paper utilized literature analysis to summarize 200 terpenoids with biological activities that are derived from plant endophytic fungi in China between 2017 and 2019. Among them, sesquiterpenoids were the most important kind of terpenoids, and Trichoderma and Aspergillus species were main terpenoid-producing plant endophytic fungi. Furthermore, these terpenoids displayed multifarious biological activities, including antimicrobial, antipathogenic, and anti-inflammatory activities, as well as cytotoxicity, antitumor agents, and enzyme inhibition.