<img src=” https://s3.amazonaws.com/production.scholastica/article/91083/large/prnano_1042023ga.jpg?1702320855”> In this era of globalization, there is a need for green synthesis of nanoparticles (NPs), which should lessen the tremendous energy consumption, the utilization of toxic compounds, and time, which can help save the environment from hazardous effects. Green synthesis attempts to utilize products from natural agents like plants and fungi because of their profound availability of bio compounds. The NPs derived from them exhibit anticancer, antibacterial, antimicrobial, antioxidant, anti-diabetic, and immunomodulatory properties because of their unique physical and chemical properties. These extraordinary properties make them promising agents in medicine and agriculture areas. The review has targeted the mush-room-derived NPs and bioactive compounds, including the nutritional content of mushrooms with their multipurpose properties, followed by encapsulation and delivery of the biotherapeutics. These NPs have found significant applications in advancing industrial and biomedical ventures. A complete understanding of the synthesis mechanism will help optimize the synthesis protocols and con-trol the shape and size of NPs.