PurposeMycelium is an upcoming bio-based alternative material that has various applications in different industries. Mycelium materials used as composites, leather, construction materials and some are even available for commercial purposes. However, there was not much research found when it came to the application of mycelium as a textile alternative. The purpose of this paper is to examine the potential of mycelium in the textile industry and its possible applications.Design/methodology/approachThis review consolidates literature that refers the two major methods used in fungal mycelium production namely; as a composite and as a pure self-grown mycelium sheet. The study compared the current research status in this respective field and reported the scope in the pure mycelium development.FindingsThe results of the review reported that several research works are performed in composite production with different feedstock. The production methods and product development steps were well established for several applications from home utilities to construction materials. Whereas, in the case of self-grown mycelium sheet production only limited research works were found. Though the possibilities of engineered composite sheets are developed with various properties, research on self-grown pure mycelium sheets are at infant stage. Sensitive production methods, lower tensile, tearing, poor handle properties with brittle structure and non-uniformity in thickness are noted as limitations. Sustainable nature, self-grown three-dimensional nano-fibril network with porous structure are found to be advantageous.Originality/valueThe solid culture method was identified as a potential method to develop a sheet-like self-grown mycelium with different dimensions. The review results clearly show the lack of research in the direct application of self-grown pure mycelium area concerning feedstock material, fungal species selection and characterization of the developed product. Addressing the existing limitations will yield a sustainable textile material for fashion and textile industry with great potential.