Cordyceps militaris is a medicinal fungus used traditionally for treating fatigue, boosting immunity, and managing various health conditions. This comprehensive review explains how different growing methods, nutrients, light, temperature, and substrate materials affect the production of beneficial compounds in the fungus. The findings show that mixing grains with insect materials and using specific light conditions can significantly increase production of cordycepin, the most promising compound for cancer and immune health. The review identifies that more standardized growing methods and better understanding of the fungus’s metabolism are needed to make large-scale production practical and affordable.