Conventional food packaging materials, such as polyethylene, polystyrene, metal foils, and glass, have long been used to preserve food quality, ensure safety, extend shelf life, and reduce food loss. Despite their effectiveness, growing consumer concerns over the negative environmental and health impacts such as microplastic accumulation in food, metal erosion, and the impermeability of glass have led to an increasing demand for environmentally friendly packaging solutions. Biodegradable packaging, particularly edible food films and coatings (EFFC), is emerging as a sustainable alternative, driven by the need for safer, cost-effective, and eco-friendly options. The scientific literature has explored various agro-materials for developing EFFC, but research on edible and medicinal mushrooms as a source of EFFC remains scarce. These mushrooms, rich in bioactive compounds such as polysaccharides (β-glucan, hemicellulose, chitin, and mannans), proteins, antimicrobial agents, antioxidants, and nutraceutical components, offer a promising alternative for developing innovative and functional packaging materials. Additionally, residues and by-products from mushroom cultivation can be repurposed to produce EFFC. This chapter will explore the potential of edible mushrooms and their by-products in developing EFFC, with a focus on their application in preserving perishable food commodities. This will also highlight the advantages of mushroom-based EFFC in extending shelf life, reducing food waste, and addressing environmental concerns, making them an ideal candidate for sustainable food packaging solutions.