Purpureocillium lilacinum PL11 (formerly Paecilomyces lilacinus) is a ubiquitous fungus found in several habitats, mainly in the soil, and belongs to the Ophiocordycipitaceae family. This fungus was shown to have potential applications in agriculture as a biocontrol agent and biofertilizer. P. lilacinum can inhibit plant‒pathogenic fungi and nematodes, including root-knot and potato cyst nematodes. Additionally, P. lilacinum produces siderophores and indole-3-acetic acid (IAA), enhancing plant development and increasing soil nutrient availability. P. lilacinum has been extensively studied in various commodities, including pineapple, maize, soybean, and legume. Most studies have evaluated P. lilacinum as a biocontrol agent, especially for nematode control. Other studies have evaluated the production of secondary metabolites and bioremediation, and few studies have used this fungus as a plant growth promoter. This review addressed important aspects of using this fungus. P. lilacinum is a promising fungus that can be used for agricultural production, reducing environmental impact, and thus collaborating for a sustainable agriculture production system.