Edible fungus is widely eaten because of their delicious taste and high nutritional value. Growing evidence indicates that edible fungus is rich in various active ingredients including polysaccharides, proteins, fats, vitamins, and other ingredients. Polysaccharides are one of the main active ingredients of edible fungi. Increasing research has confirmed that edible fungus polysaccharides (EFPs) show multiple biological activities such as antioxidant, anti-inflammatory, anti-tumor, immune regulation, anti-virus, gut microbiota regulation, hypoglycemic, etc. Hence, EFP related research has received more and more attention due to their non-toxic, high medical, and nutritional values. This paper reviews the latest research progress of EFPs biological activities, and looks forward to their future development trend. This review provides a theoretical basis for studying the application of EFPs in the fields of biomedicine, cosmetics, health food, and promotes the development and utilization of EFPs.