In past few years of nanoscience, the primary focus on nanoparticle (NP) synthesis has been on developing an environmentally benign method that produces NPs with the appropriate physicochemical qualities. Since the production of nanoparticles necessitates the usage of hazardous and toxic compounds, researchers worldwide have investigated the usage of biological organisms. Among the numerous kinds of microorganisms, fungi often provide an inexpensive downstream procedure for metallic nanoparticle separation, after these ions are hastily reduced in the occurrence of massive enzymes produced by the cells. We examine the production, properties, bioactivity, and applications of nanomaterials generated from basidiomycetes mushroom fungi in detail in this chapter. Fungi are inherently global, stress-tolerant, and new metal reducing agents. The fungal-mediated mycosynthesis of nanoparticles may be the ideal method due to its high biomedical applications, low cost, and ease of separation process. They generate a diverse array of secondary metabolites, comprising alkaloid, phenolics, terpenoids, flavonoid, and tannin, as well as macromolecules like as protein, vitamins, and amino acids. Extracellular molecules and proteins from fungal strains can act as reductants/stabilizers in the production of nanocrystals. Owing to its oxidation resistance, diverse surface activity, and permanence, fungal nanoparticles have found widespread biomedical uses. They are widely utilized particles with a variety of therapeutic uses in areas such as controlled delivery of drug, cosmetology, biosensing, and other related fields. We review the mycosynthesis of nanoparticles from basidiomycetes mushroom mushrooms in this chapter, as well as their features, biological activities, applications, and future possibilities, based on recent literature.