Mushroom has long been used for foodstuff and medicinal purposes since decades. It is now increasingly recognized that correct diet, controls and modulates many functions of human body and consequently participates in the maintenance of state of good health, necessary to reduce the risk of many diseases. Modern pharmacological research confirms large parts of traditional knowledge regarding used as foodstuff and medicinal effects of mushroom due to their antifungal, antibacterial, antioxidant and antiviral properties. This paper sums up diverse beneficial health effects of mushrooms to humans, in the form of proteins, carbohydrates, fats, vitamins, minerals, food, drugs and medicines. Mushroom has rich nutritional value with high content of proteins, vitamins, minerals, fibers, trace elements and low or no calories and cholesterol. They provide the people with an additional vegetable of high quality and enrich the diet, which can be of direct benefit to the human health and fitness. The extractable bioactive compounds from medicinal mushrooms would enhance human’s immune systems and improve their quality of life.