Mushrooms have an established history of use in traditional oriental medicine, where most medicinal mushroom preparations are regarded as a tonic, that is, they have beneficial health effects without known negative side-effects and can be moderately used on a regular basis without harm. Mushrooms comprise a vast and yet largely untapped source of powerful new pharmaceutical products.Traditional aboriginals knew the medicinal importance of edible and wild mushrooms and these are now being screened for their bioactivity in various ailments.They are also known to possess promising antioxidative, cardiovascular, hypercholesterolemia, antimicrobial, hepato-protective and anticancer effects. The alternative systems of medicine utilize the curative properties of mushrooms. By virtue of having high fibre, low fat and low starch, edible mushrooms have been considered to be ideal food for obese persons and for diabetics to prevent hyperglycaemia. The present review aimed to discuss on mushroom medicinal importance as well as nutraceuticals, antioxidatives, cardiovascular, hypercholesterolemia, antimicrobial, hepatoprotective, anticancer.