The global consumption of dried mushrooms has increased worldwide because of their rich nutritional value and culinary versatility. Dehydration methods such as sun drying, hot air drying, freeze drying, and microwave drying are employed to prolong the shelf life of a food product. These methods can also affect the food product’s nutritional value and the final product’s microbial profile. Each technique affects the retention of essential nutrients like vitamins, minerals, and bioactive compounds differently. Additionally, these techniques vary in their effectiveness at reducing microbial load, impacting the dried mushrooms’ safety and shelf life. This review addresses the gap in understanding how different dehydration methods influence dried mushrooms’ nutritional quality and microbial safety, which is crucial for optimizing their processing and consumption. It targets researchers, food processors, and consumers seeking to improve the quality and safety of dried mushrooms. This review comprehensively examines the impact of major dehydration techniques, including sun drying, hot air drying, microwave drying, and freeze drying, on the nutritional and microbial profiles of dried mushrooms. Each method is evaluated for its effectiveness in preserving essential nutrients and reducing microbial load. Current research indicates that freeze drying is particularly effective in preserving nutritional quality, while hot air and microwave drying significantly reduce microbial load. However, more well-designed studies are needed to fully understand the implications of these methods for safety and nutritional benefits. These findings are valuable for optimizing dehydration methods for high-quality dried mushrooms that are suited for culinary and medicinal use.