A total of 82 isolates of microfungi were isolated from 6 sandy soil samples collected from Teluk Aling beach, Pulau Pinang. The soil microfungi were isolated by using direct isolation, debris isolation and soil dilution techniques. Based on morphological characteristics, seven genera of microfungi were identified namely, Fusarium (42%), Aspergillus (24%), Trichoderma (13%), Curvularia (9%), Colletotrichum (6%), Helminthosporium (4%) and Penicillium (2%). The most common species isolated was Fusarium solani followed by Fusarium semitecum, Aspergillus niger, Trichoderma viride, Curvularia clavata, Curvularia lunata, Helminthosporium velutinum, Colletotrichum sp. and Penicillium chrysogenum. From the present study, it appears that the sandy beach contains a microfungi reservoir comprising of a variety of genera which contributes significantly to the ecological functioning of a marine ecosystem.