In order to meet the ever-growing needs of society, modern agriculture must develop sustainable farming and livestock production. Crops need phosphorus, a macronutrient found in soils, but they are only able to utilize small quantities of it. Chemical phosphate fertilizers are ineffective and environmentally harmful. The use of microorganisms (bacteria, yeast, filamentous fungi, and microalgae) that synthesize phytases is a promising and environmentally friendly alternative to chemical fertilizers. Phytases are also needed as feed additives in animal husbandry to overcome phosphorus deficiency for animal growth and development. Phytases are phosphatases that catalyze the release of phosphorus from phytate by stepwise hydrolysis. The broad substrate specificity, optimal pH range, higher thermal stability, and specific efficiency of fungal phytases make them interesting enzymes for agricultural applications. They improve and stimulate the growth and development of plants and animals by releasing inorganic phosphorus and producing siderophores, organic acids, hydrogen cyanide, ammonia, and phytohormones. Phytases are crucial for enhancing phosphorus use in farming and decreasing phosphorus waste’s environmental effects. This paper addresses key challenges in modern farming, such as the inefficient utilization of phosphorus from soil and the environmental harm caused by chemical fertilizers, and provides a comprehensive overview of recent advances in the research of fungal phytases. Available scientific data have been synthesized to highlight the potential of phytase use in agriculture. This review outlines key areas for future research, including the development of phytase variants with improved functionality. The potential integration of fungal phytases into sustainable agricultural practices is underlined, in contrast to previously published work focused primarily on their biochemical properties. The review offers new insight into the possible applications of micromycete phytases as a critical factor for sustainable agriculture in the future.