Fungi are vital to numerous industrial and household processes, especially producing cheeses, beer, wine, and bread, and they are accountable for breaking down organic matter. The remarkable medicinal and nutritional values of the mushrooms have increased their consumption. Agaricus bisporus belongs to the Agaricaceae family, and it is a top-ranked cultivated mushroom that is well known for its edibility. A. bisporus is rich in nutrients such as carbohydrates, amino acids, fats, and minerals and has potential anticancer, antioxidant, anti-obesity, and anti-inflammation properties. The bioactive compounds extracted from this mushroom can be used for the treatment of several common human diseases including cancer, bacterial and fungal infections, diabetes, heart disorder, and skin problems. A. bisporus has opened new horizons for the world to explore mushrooms as far as their culinary and medicinal values are concerned. In recent years, tyrosinase and ergothioneine have been extracted from this mushroom, which has made this mushroom worth considering more for nutritional and medicinal purposes. To emphasize various aspects of A. bisporus, a comprehensive review highlighting the nutritional, medicinal, and cosmetic values and finding out the research gaps is presented. In this way, it would be possible to improve the quality and quantity of bioactive compounds in A. bisporus, ultimately contributing to the discovery of new drugs and the responsible mechanisms. In the present review, we summarize the latest advancements regarding the nutritional, pharmaceutical, and cosmetic properties of A. bisporus. Moreover, research gaps with future research directions are also discussed.