Grasses play an important role in providing livestock feed, the establishment and maintenance of pastures and ornamental uses. However, the enormous biodiversity capacity of these plants in the country for turfgrasses and forage production is not currently used. Many of these grasses are symbiotic with endophytic fungi and symbiosis has improved the performance of some traits in host plants. In the first experiment to investigate the symbiotic effect of fungi and plants and comparison of elite plants selected from previous studies, a germplasm containing four Iranian populations of perennial ryegrass ( Lolium perenne L.) including populations #3, #7, #8 and #10, five Iranian tall fescue ( Festuca arundinacea ) genotypes including three endophyte-infected clones of B+ and C+ and Soh and endophyte-free clone of B- and C- and commercial cultivars Vigor and Silverado were studied for morpho-phenological traits in a randomized complete block design with two replications. Germplasm was evaluated over two years for traits related to seed, forage production and turf characteristics. Self-pollinated seeds were also obtained from these genotypes. Then, a greenhouse experiment was carried out in pots based on a completely randomized design with three replications for evaluation of ornamental traits in self-pollinated and cross-pollinated progenies. After measuring morphological traits, drought stress was applied by stopping irrigation. The results of the first experiment showed that for both ornamental purposes and forage production, some of the Iranian genotypes were superior to commercial cultivars and the presence of endophyte increased the color, height, plant vigor, and grain yield. By estimating the economic performance of the seed production it may indicate that cultivation of some genotypes can generate significant added value. Also, the low percentage of self-incompatibility observed in some genotypes makes it possible to apply breeding methods based on inbreeding to these genotypes. The second experiment showed that inbreeding depression percentage had different values in different genotypes and traits. However, an accurate estimation of inbreeding depression percentage requires further experiments. Generally, the selfing process improved ornamental traits, especially in the B+ genotype. Comparison of environmental change between cultivation in field and greenhouse and stress and non-stress conditions showed that the difference between genotypes was more obvious under adverse conditions, but in general, Fescue had more stability than ryegrass in changing environmental and stress conditions. It seems that tall fescue cultivation is more suitable for the warm and dry region of Isfahan. Among the evaluated germplasm in both experiments, population 7 and genotype C- for forage production and population 8, "Koohrang" and B+ genotypes for turf characteristics had good potential to be possibly released as the commercial cultivars. Key Words : Perennial ryegrass, Tall fescue, Endophytic fungi, Drought stress, Inbreeding depression, Ornamental traits.