Metabolites of the fungus have become a new path forward in formation of nanoparticles and nanominerals, they provide an environmentally friendly and sustainable substitute to traditional chemical practices of production of nanominerals. Nanoparticles and nanominerals have a repertoire of distinct characteristics because of their nanoscale size, which is applicable in many areas of application in medicine, agriculture as well as industry. Fungi serve as biofactories to make nanoparticles; using various metabolites including proteins, enzymes, and polysaccharides to minimize metal ions and stabilize the formed nanoparticles. These bio-systems have the ability to produce high precision and control of size, shape, and composition of metallic, oxide, and hybrid nanoparticles. The chapter describes several fungal species that produce different forms of nanoparticles such as copper, silver, gold, and magnetic, in terms of biosynthetic ability which is spectacular. Such nanoparticles produced by fungi have exclusive characteristics and can be used in various fields. They are promising in medicine in targeted drug delivery, antimicrobial treatment, and cancer diagnostics. Environmental applications in water purification, pollutant remediation, and sensing technologies are used in the environment. Fungal nanoparticles are used in industrial sectors to catalyze, as electronic components and developing advanced materials. Nevertheless, problems such as standardization of the production processes, knowledge of accurate biomolecular pathways, and large-scale production continue to be a challenge despite the great progress. More research within this field should be done in future to optimize the metabolic pathways, improve the stability of nanoparticles, and generate a more detailed understanding of the interactions of fungal nanomaterial.