The current study was to screen and evaluate the endophytic fungal population residing internally in the medicinal plant Ocimum basilicum L. Different fungal species were isolated from the leaf of plant but on the basis of preliminary antibacterial testing Aspergillus terrus was used further to produce biologically active secondary metabolites. The zone of inhibition was formed against Styphylococcus aureus that showed the bioactivity of the isolated endophytic fungus. The endophytic fungus was identified on the basis of morphological and microscopic characterization. SDA and CYA culture media were best for the growth of A. terrus L. and CYB is the best medium for the fungal metabolite production. It showed the growth of fungal specie actively and produce enough quantity of organic extract. Fungal strain was cultured in both conditions i.e, shaking and static to compare them for the production of novel bioactive compounds. It has been observed that the fungal culture grown in shaking incubator at 150 rpm have produce more novel biologically active metabolites as compared to fungal strains grown in static conditions. Thick fungal growth makes it anaerobic that inhibits the production of bioactive compounds. However it also depends on the properties of fungal cultures to be grown in static or shaking conditions. Secondary metabolites from the endophytic fungus were extracted with ethyl acetate and the compound was purified by chromatography, TLC, HPLC and using GCMS, metabolites in the methanolic extract of A. terrus were determined. Multiple peaks were detected from endophytic A. terrus that showed principal chemical compounds. The pure compound chromatogram showed one prominent peak having retention time 17.85 and area is 53497644.52. Results revealed that the pure compound is 1, 2-Benzenedicarboxylic acid with the chemical formula C16H22O4 and molecular weight 278. The biologically active compounds obtained from endophytic fungi could be a new pharmacological constituent.\n\nKey words: Isolation, endophytic, Aspergillus terrus L., medicinal plant, Ocimum basilicum L.

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