<p>Fengycin is a cyclic lipopeptide antibiotic predominantly synthesized by <i>Bacillus</i> species. It exhibits remarkable antifungal, antitumor, and antiadhesion activities. It also possesses advantageous properties such as low toxicity, effective antibacterial activity, and biodegradability, making it a promising candidate for applications in biocontrol, medicine, and industry. However, challenges including low yield, complex purification processes, and high production costs currently restrict its large-scale commercialization. To promote the research and development of fengycin and facilitate its practical applications, this review summarizes fengycin’s structural characteristics, subclasses, and producing bacteria. Additionally, it delves into the biosynthesis process, known regulatory factors and mechanism, as well as strategies for enhancing yield through strain improvement and fermentation condition optimization. Furthermore, it addresses the limitations and future directions for fengycin research. This review provides a valuable insights and guidance for future researchers aiming to expand fengycin’s applications in medical and agricultural fields. This work also establishes a theoretical foundation for realizing its significant commercial potential.</p>