Mushrooms have been used for centuries not only as food but also in traditional medicine as a source of components with pro-health activity. One of them is Coprinus comatus (O.F.Müll.) Pers. also called shaggy mane, chicken drumstick mushroom, or lawyer's wig. In Asian countries, C. comatus (CC) is approved as edible mushroom and often cultivated for consumption, whereas in many other countries, although it is widespread, it is unrecognized and not used. In this review, for the first time, we discussed about the composition related to functional properties as well as the potential risks associated with consumption of CC by reviewing scientific literature. The information has been collected in order to get to know this species thoroughly. Various studies show many of the physiological activities, such as antioxidant, anticancer, antiandrogenic, hepatoprotective, acetylcholinesterase inhibitory, antiinflammatory, antidiabetic, antiobesity, antibacterial, antifungal, antinematode, and antiviral. Besides positive physiological properties, CC has also negative features, for example, skin reactions in patients with dermatitis and atopic predisposition, risk of confusion with poisonous mushrooms, quick autolysis after collection, and contamination of toxic elements.