Thirty-six lactic acid bacteria belong to Lactococcus, Lactobacillus, Enterococcus, and Pediococcus were isolated, and the spectrum of antifungal activity was verified against Fusarium oxysporum (KACC 42109), Aspergillus niger (KACC 42589), Fusarium moniliforme (KACC 08141), Penicillium chrysogenum (NII 08137), and the yeast Candida albicans (MTCC 3017). Three isolates, identified as Pediococcus pentosaceus (TG2), Lactobacillus casei (DY2), and Lactococcus (BSN) were selected further, and their antifungal compounds were identified by ESI-MS and HPLC analysis as a range of carboxylic acids along with some unidentified, higher molecular weight compounds. An attempt to check out the shelf life extension of wheat bread without fungal spoilage was performed by fermenting the dough with the Lactococcus isolate. Apart from growth in low pH and tolerance to bile salts, probiotic potential of these three isolates was further substantiated by in vitro screening methods that include transit tolerance to the conditions in the upper human gastrointestinal tract and bacterial adhesion capacity to human intestinal cell lines.