The field of biotechnology presents us with a great chance to use many organisms, such as mushrooms, to find suitable solutions for issues that include the accumulation of agro-wastes in the environment. The green biotechnology of mushrooms (Pleurotus ostreatus L.) includes the myco-remediation of polluted soil and water as well as bio-fermentation. The circular economy approach could be effectively achieved by using oyster mushrooms (Pleurotus ostreatus L.), of which the substrate of their cultivation is considered as a vital source for producing biofertilizers, animal feeds, bioenergy, and bio-remediators. Spent mushroom substrate is also considered a crucial source for many applications, including the production of enzymes (e.g., manganese peroxidase, laccase, and lignin peroxidase) and bioethanol. The sustainable management of agro-industrial wastes (e.g., plant-based foods, animal-based foods, and non-food industries) could reduce, reuse and recycle using oyster mushrooms. This review aims to focus on the biotechnological applications of the oyster mushroom (P. ostreatus L.) concerning the field of the myco-remediation of pollutants and the bio-fermentation of agro-industrial wastes as a sustainable approach to environmental protection. This study can open new windows onto the green synthesis of metal-nanoparticles, such as nano-silver, nano-TiO2 and nano-ZnO. More investigations are needed concerning the new biotechnological approaches.