Cryptochromes (CRYs) belong to the photolyase/cryptochrome flavoprotein family, which is widely distributed in all kingdoms. A phylogenetic analysis indicated that three Cordyceps militaris proteins [i.e., cryptochrome DASH (CmCRY-DASH), (6-4) photolyase, and cyclobutane pyrimidine dimer (CPD) class I photolyase] belong to separate fungal photolyase/cryptochrome subfamilies. CmCRY-DASH consists of DNA photolyase and flavin adenine dinucleotide-binding domains, with RGG repeats in a C-terminal extension. Considerably, more carotenoids and cordycepin accumulated in the Delta Cmcry-DASH strain than in the wild-type or Delta Cmwc-1 strains, indicating an inhibitory role for CmCRY-DASH in these biosynthetic pathways. Fruiting body primordia could form in the Delta Cmcry-DASH strain, but the fruiting bodies were unable to elongate normally, differently from the Cmwc-1 disruption strain, where primordium differentiation did not occur. Cmcry-DASH expression is induced by light in the wild-type strain, but not in the Delta Cmwc-1 strain. CmCRY-DASH is also necessary for the expression of Cmwc-1, implying that Cmcry-DASH and Cmwc-1 exhibit interdependent expression. The Cmvvd expression levels in the wild-type and Delta Cmcry-DASH strains increased considerably following irradiation, while Cmvvd expression in the Delta Cmwc-1 strain was not induced by light. It is speculated that the photo adaptation may be faster in the Cmcry-DASH mutant based on Cmvvd transcript dynamics. These results provide new insights into the biological functions of fungal DASH CRYs. Furthermore, the DASH CRYs may regulate fruiting body development and secondary metabolism differently than WC-1.