Medicinal mushrooms have long been utilized in traditional medicine and are currently gaining scientific interest for their potential role in supporting cognitive health. This chapter explores the neuroprotective effects of key mushroom species like Ganoderma lucidum (Reishi), Hericium erinaceus (Lion’s Mane), and Cordyceps species, thus focusing on their impact on memory, neuroplasticity, and cognitive function. These mushrooms are rich in bioactive compounds that could contribute to neuroprotective effects. Mechanisms discussed include Brain-Derived Neurotrophic Factor (BDNF) and nerve growth factor (NGF), enhancement of cerebral energy metabolism and regulation of gut–brain axis, which are crucial for neuronal growth, survival, and synaptic plasticity. Additionally, these compounds exhibit strong antioxidant and anti-inflammatory properties like targeting signaling pathways of NF-κB and Toll-like receptors to reduce oxidative stress and neuroinflammation, two major contributors to age-related cognitive decline. Current findings from preclinical and emerging clinical studies are reviewed to provide an insight into their cognitive potential, especially in the aging populations. This chapter aims to provide a foundational understanding of how medicinal mushrooms may contribute to cognitive health by highlighting both their traditional roots and evolving modern scientific relevance.