In the evolving field of bioproducts, materials that synergize sustainability with functionality are of paramount importance. Mycelium composites, derived from intricate networks of fungal filaments, are gaining traction as innovative bioproducts that offer a compelling blend of eco‐friendliness, renewability, and adaptability. As the quest intensifies for alternatives that can mitigate the environmental toll of conventional products, mycelium‐based solutions are emerging as beacons on the sustainable bioproducts horizon. Their transition from niche innovations to mainstream applications depends on their ability to overcome a series of fabrication challenges. This review paper investigates the critical challenges faced in the fabrication of mycelium composite. It examines rigorously some essential factors leading to fabrication failure, such as contamination, inconsistent growth, insufficient moisture, inappropriate pH, and improper substrate preparation. The review offers a comprehensive analysis of each factor influencing mycelium growth and the resulting composite properties, with an emphasis on preventative and mitigating strategies. Through an in‐depth exploration of case studies detailing unsuccessful mycelium composite fabrication, the significance of understanding these failure factors is emphasized. The paper culminates in a forward‐thinking discourse on potential strategies for refining fabrication processes, and identifies promising research areas poised to enhance both the success rate and overall efficiency of mycelium composite production.