In the last few decades, incorporating bio-based resources typically derived from plants, animals, and microorganisms into cosmetics products has received increasing attention. Fungal species have proven to be a valuable group of organisms with several industrial applications. Fungal-based cosmetics have emerged as a promising frontier in skincare because they are eco-friendly, cost-effective, and a good source of natural bioactive compounds, offering a spectrum of skin benefits. This chapter discusses the emollient, exfoliation, skin-lightening, and anti-aging properties of fungal species and fungal-derived compounds.