The twentieth century saw significant advancements in agricultural production driven by pesticides, fertilizers, and genetic improvements. However, the excessive use of chemical fertilizers has reduced the natural presence and benefits of arbuscular mycorrhizal fungi (AMF) in agricultural fields. AMF form a symbiotic relationship with approximately 80% of terrestrial plants, significantly enhancing nutrient acquisition, particularly phosphorus, and providing protection against pathogens. This relationship is facilitated by the growth of mycelium within the plant roots (intraradical) and extending out into the soil (extraradical). Studies show that AMF have ability to increase crop growth by up to 30% and phosphorus uptake by 20–70% compared to non-mycorrhizal plants. There are seven types of mycorrhizae, but AMF and ectomycorrhizae (ECM) are the most abundant and widely studied. AMF are especially efficient in nutrient-poor environments where nutrients are tightly bound to soil particles. They play a critical role in disease suppression, heavy metal stress alleviation, and increased grain production, thereby enhancing sustainable agricultural practices. For example, the co-inoculation of AMF with beneficial saprophytic fungi has been discovered to improve plant growth and root colonization and enhance plant resilience against diseases. This synergy helps to transform disturbed ecosystems into productive land, emphasizing the importance of reintroducing mycorrhizal systems for soil health restoration and bioremediation of contaminated soils. Recent research has highlighted the molecular mechanisms underlying nutrient exchange and symbiotic signalling between AMF and host plants. The fungus releases ‘Myc factors’, whereas plant roots release strigolactones, triggering mutualistic symbiosis. Understanding these processes offers a pathway for leveraging these fungi for crop production and crop improvement, supporting the shift toward sustainable agriculture under diverse environmental conditions.