Dictyophora indusiata (Vent. Ex. Pers.) Fischer or Phallus indusiatus is an edible member of the higher mushroom phylum of Basidiomycetes. Known for its morphological elegance that gave it the names bridal veil fungus, veiled lady or queen of the mushrooms, it has numerous medicinal values that are beginning to be acknowledged through pharmacological efficacy studies. In an attempt to promote research on this valuable natural resource, the present communication aims to provide a comprehensive review of the chemistry, pharmacology and potential therapeutic applications of extracts and compounds isolated from D. indusiata. Of the bioactive compounds, the chemistry of the polysaccharides as major bioactive components primarily the β-(1→3)-D-glucan with side branches of β-(1→6)-glucosyl units are discussed, while small molecular weight compounds include terpenoids and alkaloids. Biochemical and cellular mechanisms of action from general antioxidant and anti-inflammatory to more specific signaling mechanisms are outlined along with potential applications in cancer and immunotherapy, neurodegenerative and chronic inflammatory diseases, etc. Further research areas and limitations of the current scientific data are also highlighted.Biomedicines 2019, 7, 98 2 of 21 have been reported [3]. The composition of carbohydrates can reach up to 47% of the dry weight of which the soluble polysaccharides are about 38%, while crude fibres and crude proteins contents are about 29% and 6% respectively [1]. In this communication, the emphasis is on the compositions of the fruiting body far beyond nutritional source with a focus on their pharmacologically active components and their therapeutic implications. In this connection, considerable attention has been given to the major components of the fungus, the polysaccharides, while small molecular weight drug-like molecules such as terpenoids and alkaloids have not been extensively studied. The chemistry and biological significance of all the bioactive compounds known from D. indusiata are herein scrutinised.Biomedicines 2020, 8, x FOR PEER REVIEW 2 of 21 have been reported [3]. The composition of carbohydrates can reach up to 47% of the dry weight of which the soluble polysaccharides are about 38%, while crude fibres and crude proteins contents are about 29% and 6% respectively [1]. In this communication, the emphasis is on the compositions of the fruiting body far beyond nutritional source with a focus on their pharmacologically active components and their therapeutic implications. In this connection, considerable attention has been given to the major components of the fungus, the polysaccharides, while small molecular weight drug-like molecules such as terpenoids and alkaloids have not been extensively studied. The chemistry and biological significance of all the bioactive compounds known from D. indusiata are herein scrutinised.