Medicinal mushrooms are higher fungi with additional nutraceutical attributes having low fat content and a trans-isomer of unsaturated fatty acids along with high fibre content, triterpenes, phenolic compounds, sterols, eritadenine and chitosan. They are considered as the unmatched source of healthy foods and drugs. They have outstanding attractive taste, aroma and nutritional value, so are considered as functional food, which means they are beneficial to the body not only in terms of nutrition but also for improved health. Medicinal mushrooms and their extract have a large number of bioactive components called secondary metabolites. The presence of polysaccharide β-glucans or polysaccharide-protein complexes content in mushroom extract have great therapeutic applications in human health as they possess many properties such as anti-diabetic, anti-cancerous, anti-obesity, immunomodulatory, hypocholesteremia, hepatoprotective nature along with anti-aging. The present review focuses on the comprehensive account of the medicinal properties of various medicinal mushrooms. This will further help the researchers to understand the metabolites and find other metabolites as well from the mushrooms which can be used for the potential development of the drugs to treat various life-threatening diseases.