Xylaria nigripes is a rare medicinal mushroom in the Xylariaceae family, which has long been used in traditional medicine to aid in treating conditions such as insomnia, neurasthenia, and inflammation. This fungus usually grows in an environment characterized by termite nests. Recent studies have shown that X. nigripes contains many valuable biological compounds such as polysaccharides, nucleosides, and sterols, which provide important biological effects, such as antioxidants, liver protection, immune system regulation, and diabetes treatment. In addition to pharmacological potential, many research works have focused on developing X. nigripes biomass kernel techniques under artificial culture conditions, in order to optimize growth and accumulation of active ingredients. These results not only contribute to clarifying the application potential of this mushroom in the pharmaceutical field but also create a scientific foundation for the sustainable exploitation of this rare medicinal resource.