Schizophyllum commune is a basidiomycete that is capable of producing different valuable metabolites such as schizophyllan-a polysaccharide, ethanol, and lignocellulolytic enzymes. Schizophyllan finds application in the food industry, pharmacy, and oil recovery. It acts as a non-specific stimulator of immune system. It shows bioactivities such as antineoplastic, antibacterial, anti-cancer, anti-inflammatory, and antiparasitic properties. S. commune is capable of producing bioethanol directly in a single step using lignocellulosic biomass. Lignocellulolytic enzymes including cellulase, xylanase, pectinase, laccase, lignin peroxidase, and manganese peroxidase, are also synthesized efficiently by different strains of S. commune. Being a good producer of ligninolytic enzymes, S. commune has been shown to be effective for the degradation of various synthetic dyes. This article reviews the production of schizophyllan, ethanol, and enzymes and the utilization of S. commune for lignocellulose degradation and decolorization of synthetic dyes.