Entomopathogenic fungi (EPF) have emerged as promising biological alternatives to chemical pesticides for integrated pest management (IPM). However, their widespread application necessitates a thorough understanding of their safety and residual pathogenic effects. This review critically evaluates the current knowledge on EPF toxicity to non-target organisms, including pollinators, beneficial arthropods, vertebrates, and humans. The implications of secondary metabolite production, endophytic behavior, and environmental persistence are discussed in relation to ecological and human health safety. Regulatory frameworks from major regions, including the USA, EU, Canada, Australia, Brazil, India, China, and Japan, are compared to highlight global standards in EPF risk assessment. Even with strict rules in place, there are still important areas we do not fully understand, especially about how long these substances last, which plants they affect, how toxic the metabolites are, and the risks to humans. The review underscores the urgent need for harmonized safety protocols, robust field data, and genomic tools to enhance risk evaluation and ensure the responsible deployment of EPF in sustainable agriculture.