Mycotoxins present a great concern to food safety and security due to their adverse health and socio-economic impacts. The necessity to formulate novel strategies that can mitigate the economic and health effects associated with mycotoxin contamination of food and feed commodities without any impact on public health, quality and nutritional value of food and feed, economy and trade industry become imperative. Various strategies have been adopted to mitigate mycotoxin contamination but often fall short of the required efficacy. One of the promising approaches is the use of bioactive plant components/metabolites synergistically with mycotoxin-absorbing components in order to limit exposure to these toxins and associated negative health effects. In particular, is the fabrication of β-cyclodextrin-based nanosponges encapsulated with bioactive compounds of plant origin to inhibit toxigenic fungi and decontaminate mycotoxins in food and feed without leaving any health and environmental hazard to the consumers. The present paper reviews the use of botanicals extracts and their phytochemicals coupled with β-cyclodextrin-based nanosponge technology to inhibit toxigenic fungal invasion and detoxify mycotoxins.