Shiitake mushrooms are one of the most popular and highly consumed mushrooms worldwide both in fresh and dry forms. However, it rapidly starts losing its quality immediately after harvest which necessitates processing and/or proper storage before being distributed. However, the processes used for preserving other mushrooms (e.g., Agaricus) become unviable for shiitake due to its uniqueness (higher respiration rate, varied biochemicals, growth, etc.) which demands individual studies on shiitake. This review starts by listing the factors and their interdependence leading to a quality decline in shiitake after harvest. Understanding well about these factors, numerous post‐harvest operations preserve shiitake as fresh form for a shorter period and as dried forms for a longer shelf‐life. These processes also affect the intrinsic quality and nutrients of shiitake. This review comprehensively summarizes and discusses the effects of chemical processing (washing, fumigation, coating, and ozone), modified atmosphere packaging (including irradiation) on the quality of fresh shiitake while discussing their efficiency in extending their shelf‐life by inhibiting microbial spoilage and deterioration in quality including texture, appearance, nutrients, and favor. It also reviews the impact of thermal dehydration on the quality of dried shiitake mushrooms, especially the acquired unique textural, nutritional, and aromatic properties along with their merits and limitations. Since shiitake are preferred to be low‐cost consumer products, the applicability of freeze‐drying and sophisticated novel methodologies, which prove to be expensive and/or complex, are discussed. The review also outlines the challenges and proposes the subsequent future directives, which either retains/enhances the desirable quality in shiitake mushrooms.