Pharmaceutical personal care products (PPCPs) have increased in consumption due to the worldwide post-pandemic situation, marking them as chemical and pathogenic pollutants in significantly higher concentrations than ever in the ecosystem. Considering the inexplicable levels of these chemical residues discharged into the environment, concerns have been raised regarding their probable ecotoxicity to marine and terrestrial life. A further concern is the potential for developing and spreading antibiotic-resistant microorganisms and genes in aquatic ecosystems due to antibiotic exposure. Hence, knowing how these compounds impact aquatic ecosystem functioning is imperative, and thus is a critical area of research. The ecological risk analysis of PPCPs in aquatic ecosystems has been carried out using various strategies. Previous studies have reported numerous approaches for eliminating these PPCPs, including conventional treatment methods, activated sludge processes, generated wetlands, biological remediation, sequencing batch reactors, phytoremediation, and membrane bioreactors. In terms of green biotechnology approaches, the current research aims to discover effective procedures for removing PPCPs and their emerging resources as pollutants. Therefore, this review focuses on the over-extensive utilization of PPCPs and their emergent sources responsible for the contamination and environmental threat for future wastewater purposes. Further, as fungi and their enzymes and derivatives can remove pharmaceuticals and personal care products from wastewater through oxidation and several processes, they have attracted the attention of the scientific community due to their ability to remove PPCPs as pollutants and their status as emerging resources in wastewater. This review examines the fundamental approach and progress of the bioremediation of pharmaceutical- and personal-care-contaminated wastewater using fungal-based systems. It also discusses mechanistic approaches through hybridizing cultures and other biological systems with fungal strains, current technologies, and prospects for future research on PPCPs in wastewater treatment.