Fungi are primary decomposers, ubiquitous symbionts, or widespread pathogens that influence nutrient cycling and ecosystem maintenance. Thus, fungi, a highly diverse group of organisms, play a critical role in ecosystems and, just like other organisms, are affected by climate change. In this chapter, we will focus on how fungi and fungal-like organisms respond to climatic shifts, particularly to rising temperatures, altered precipitation patterns, and increases in extreme weather events. Key points are the impact of a changing climate on fungal biodiversity, communities, and ecosystem functions. The intricate relationship between fungi and ecosystem services is explored with emphasis on feedback mechanisms that either mitigate or exacerbate the impacts of climate change. Furthermore, the potential consequences of climate-induced shifts in fungal distribution in agriculture and human health highlight the urgent need for integrative research approaches to predict and manage these impacts. Synthesis of current knowledge and emerging research directions in fungal research emphasizes the importance of integrating fungal ecology into climate models and global sustainability efforts. Understanding these intricate dynamics is critical for leveraging the role of fungi in ecological processes to formulate better climate mitigation strategies and ensure the maintenance of Earth’s biodiversity in an era of rapid environmental change brought by anthropogenically driven climate change.