Solid state fermentation (SSF) is a sustainable process that uses low amounts of water and transforms plant-based agro-industrial residues into valuable products such as enzymes, biofuels, nanoparticles and other bioactive compounds. Many fungal species can be used in SSF because of their low requirements of water, O2 and light. During SSF, plant-based wastes rich in soluble and insoluble fiber are utilized by lignocellulolytic fungi that have enzymes such as lignases, celullases or hemicelullases that break fiber hard structure. During the hydrolysis of lignin, some phenolic compounds are released but fungi also synthetize bioactive compounds such as mycophenolic acid, dicerandrol C, phenylacetates, anthraquinones, benzofurans and alkenyl phenols that have health beneficial effects such as antitumoral, antimicrobial, antioxidant and antiviral activities. Another important group of compounds synthetized by fungi during SSF are polysaccharides that also have important health promoting properties. Polysaccharides have antioxidant, antiproliferative and immunomodulatory activities as well as prebiotic effects. Fungal SSF has also proved to be a process which can release high contents of phenolics and it also increases the bioactivity of these compounds.