A lack of agricultural output exacerbates the global problem of malnutrition and food security. Leveraging and promoting the use of locally sourced plants and mushrooms may provide a diverse array of alternative food supplies and several nutritional advantages. The inadequate nutritional condition of several populations worldwide indicated the likely absence of knowledge about locally accessible wild edible resources. During periods of food scarcity, societies worldwide rely on wild edible plants and mushrooms to enhance food security by augmenting family meals and offering other sources of income. Globally, biodiversity is thought to be diminishing quickly due to changes in land usage. The requirement for promoting health awareness to mitigate malnutrition, a significant risk factor prevalent in emerging economies, particularly in rural regions, is on the rise. Mushrooms have several positive effects on health. They have the ability to make a significant contribution to addressing global malnutrition and food security. The nutritional value and many health advantages of edible mushrooms make them a valuable food item for humans. These vegan-friendly alternatives to meat are packed with protein, fiber, minerals, vitamins, and energy values. Especially in areas where conventional farming is struggling due to issues like rising temperatures, shrinking arable land, and excessive water demands, edible mushrooms may play a major role in alleviating malnutrition and ensuring adequate food security. People have consumed mushrooms as a culinary food. Nutritionally rich and beneficial to agricultural biodiversity, they promote malnutrition, food security, and sustainable economic growth. Edible mushrooms provide revenue and nourishment for numerous impoverished populations. Their production is a successful transformation method, and it may turn residues and forests into precious assets and contribute to sustainability in agriculture and forestry. This book chapter is designed to evaluate the extent of understanding and use of edible mushrooms as a means of addressing malnutrition and improving food security, especially in rural settings. This chapter discussed edible mushrooms’ nutritional value, possible significance in addressing malnutrition, food security, production obstacles, and solutions. It also addressed how edible mushrooms might improve food security and be used in sustainable agriculture that boosts global food security, employment, and malnutrition.