The rapid growth in global population and the consequent rise in consumption, needs and comfort have led to the excessive generation of waste, significantly contaminating all sources of natural environments including soil, air, and water ecosystems. Although various treatment and processing methods have been employed over the years to mitigate pollutants, however these approaches further releases by-products of the pollutants, which pose secondary environmental risks and lack sustainability. There is an immediate need of innovative and sustainable solutions to address the global challenge of hazardous pollutant removal from the contaminated environments. In recent decades, the biological alternatives have gained more attraction, particularly the use of living organisms such as bacteria, fungi, algae, and plants, for environmental remediation. Among these, fungi and their mycelial networks have demonstrated remarkable potential in pollutant degradation due to their unique enzymatic systems, large surface area, and adaptive growth patterns. Mycoremediation is an eco-friendly, cost-effective, and safer method for pollution management. This chapter explores important insights into the distinctive structural and biochemical properties of fungal mycelium and highlights its efficacy in the bioremediation of contaminated water effluents, offering a promising, eco-friendly approach to environmental cleanup.