Mycelium-based green composites (MBCs) represent an eco-friendly material innovation with vast potential across diverse applications. This paper provides a thorough review of the factors influencing the production and properties of MBCs, with a particular focus on interdisciplinary collaboration and long-term sustainability goals. It delves into critical aspects such as fungal species selection, substrate type selection, substrate preparation, optimal conditions, dehydrating methods, post-processing techniques, mold design, sterilization processes, cost comparison, key recommendations, and other necessary factors. Regarding fungal species selection, the paper highlights the significance of considering factors like mycelium species, decay type, hyphal network systems, growth rate, and bonding properties in ensuring the safety and suitability of MBCs fabrication. Substrate type selection is discussed, emphasizing the importance of chemical characteristics such as cellulose, hemicellulose, lignin content, pH, organic carbon, total nitrogen, and the C: N ratio in determining mycelium growth and MBC properties. Substrate preparation methods, optimal growth conditions, and post-processing techniques are thoroughly examined, along with their impacts on MBCs quality and performance. Moreover, the paper discusses the importance of designing molds and implementing effective sterilization processes to ensure clean environments for mycelium growth. It also evaluates the costs associated with MBCs production compared to traditional materials, highlighting potential cost savings and economic advantages. Additionally, the paper provides key recommendations and precautions for improving MBC properties, including addressing fungal strain degeneration, encouraging research collaboration, establishing biosecurity protocols, ensuring regulatory compliance, optimizing storage conditions, implementing waste management practices, conducting life cycle assessments, and suggesting parameters for desirable MBC properties. Overall, this review offers valuable insights into the complex interplay of factors influencing MBCs production and provides guidance for optimizing processes to achieve sustainable, high-quality composites for diverse applications.