AM fungi are widespread and are found from arctic to tropics in most agricultural and natural ecosystems. They play an important role in plant growth, health and productivity. They increase seedling tolerance to drought, high temperatures, toxic heavy metals, high or low pH and even extreme soil acidity. The cultivation of medicinal and herbal plants has assumed greater importance in recent years due to their tremendous potential in modern and traditional medicine. They are also used as raw materials for pharmaceutical, cosmetic and fragrance industries. Indian system of medicine (ISM) uses 25,000 species belonging to more than 1000 genera. About 25% species are used by the industries. The Barak Valley is the southernmost part of the Assam and consists of three districts namely Cachar, Karimganj and Hailakandi. Different tribes staying here are directly using of medicinal plants for the treatments of different ailments. Comparatively very less attention has been given for the conservation of some of these rare and endangered medicinal plants which are extensively used by the tribes of Assam. So, AM fungi can play an effective role in the conservation of some valuable medicinal plants where Glomus sp. was found to be widely used for the increase yield of important medicinal plants. This review summarizes the data from recent studies to elucidate the potential use of AM fungi for promoting growth and disease resistance in medicinal plants found in southern part of Assam, which in turn provide a natural enhancer for the commercial production of traditional drugs from various important plants.