The genus Pleurotus, commonly known as oyster mushrooms, has emerged as a valuable resource in both nutritional science and rural entrepreneurship. Mushrooms play an active role in bioremediation, thus contributing significantly to ecosystem sustainability. They serve as a viable source of food loaded with nutraceuticals and serve as functional food. The Pleurotus species are characterized by their ability to grow efficiently on lignocellulosic agricultural wastes, requiring minimal inputs while offering high biological yield. Their cultivation is environmentally sustainable and especially suitable for rural and peri-urban areas with limited capital and infrastructure. Pleurotus mushrooms are rich in proteins, dietary fibers, essential amino acids, vitamins, and minerals. Bioactive compounds such as β-glucans, lovastatin, and ergosterol confer various therapeutic properties, thereby positioning these mushrooms as functional foods with significant pharmacological relevance. Pleurotus cultivation offers a low-cost, high-return enterprise model that supports rural livelihoods, especially for women and youth. The integration of Pleurotus cultivation into local agroeconomic systems not only contributes to nutritional security but also fosters inclusive growth and environmental sustainability. Pleurotus species represents a strategic crop with significant potential for promoting health, economic empowerment, and circular bioeconomy in developing regions. Their cultivation is environmentally safe as it is growing on agricultural wastes, providing a sustainable solution to the stubble burning problem. This review aims to consolidate current findings on the biological, nutritional, medicinal, and economic importance of Pleurotus species, highlighting their role in sustainable agricultural practices and small-scale enterprise development.