In ancient China, mushrooms were regarded as promoting longevity and health, while in ancient Greece, they were believed to provide strength to warriors. The global production of edible mushrooms has risen significantly over the years due to consumer demand. The therapeutic potential of mushrooms is attributed to their bioactive compounds, such as lectins, glucans, phenolic compounds, and terpenoids. They contribute powerful action toward inflammation and oxidative reactions that could heal diseases inflicted on consumers. The availability of various mushroom species eases food industrial processes such as the production of enzymes, vitamins, antibiotics, pigments, amino acids, fatty acids, glycolipids, and polysaccharides. Further, mushrooms were added as food ingredients and pharmaceutical products. This chapter provides an eye-opener for researchers on the overall nutritional profile of various mushrooms and their health benefits. Additionally, the usage of mushroom extracts as functional food and in nutraceutical products has been described. This chapter aims to give insight into the food and pharmaceutical industries and food developers to explore more innovative products to meet the needs of consumers, depending on their utilization and application.