Fungi can degrade a wide range of contaminants due to their ability to synthesize extracellular enzymes that break down complex polysaccharides. Mycoremediation is a subset of bioremediation that involves fungi to degrade contaminants including petroleum pollutants. Despite the rich ecology, limited fungal species are associated with mycoremediation. The principal mechanisms of mycoremediation include oxidation, reduction, methylation, and demethylation processes that detoxify hazardous contaminants. Trichoderma, Penicillium, Rhizopus, Aspergillus, Fusarium, and Curvularia fungal genera are involved in the mycoremediation process. Basidiomycetes, wood rotting fungi play a crucial role in bioremediation of organic contaminants. Trametes versicolor and Pleurotus spp. have greater capacity of petroleum breakdown compared to weak competitors Ganoderma lucidum. Polyporus spp. are white rot fungi that produce enzymes such as manganese peroxidase, and lignin peroxidase and successfully degrade or uptake petroleum hydrocarbons, chlorinated insecticides, and polychlorinated biphenyl. Trametes hirsuta can cause 100% degradation of hydrocarbons whereas Fusarium proliferatum can degrade up to 95%. Trametes versicolor can degrade petrochemicals with laccase enzymes. Intrinsic bioremediation, biosparging, bioaugmentation, and bioventing are advanced and suitable in situ methods of mycoremediation that are cost-effective, as excavation of contaminants is avoided. Overall, the application of different fungi remediate petroleum contaminants in an eco-friendly manner with little or no effect on the ecosystem.