Fuente: Agri-Waste and Microbes for Production of Sustainable Nanomaterials Mushrooms, which belong to the kingdom Fungi, play a vital role in sustainable farming, which is necessary to create an ecologically sound environment. This chapter reviews the scope and application of mushrooms in agriculture with an emphasis on the roles of mushrooms in managing agricultural waste, promoting plant growth, enhancing soil health, and serving as biofertilizers and biocontrol agents. Focus is given to the use of mycorrhizal fungi in improving nutrient uptake due to the mycelia’s ability to establish deep into the soil. A brief overview of mushroom-derived bioactive compounds is presented, emphasizing their application in the pharmaceutical and healthcare sectors. Mushroom cultivation makes optimal use of agricultural waste, resulting in a sustainable agricultural practice. This chapter further reviews mushroom culture-based income generation, rural expansion, and agri-entrepreneurship development. The merits and demerits of mushroom process technologies are also discussed. The chapter concludes by highlighting the emergence of new technology and advancements in genetic research that will ease future mushroom cultivation.