Mycoremediation, an application of fungi for the degradation of xenobiotics and other environmental pollutants, has been proven to be a multi-perspective, environmentally friendly, and sustainable biotechnology for water and soil treatment. In this chapter, the technological, ecological, and economical features of mycoremediation are emphasized, and the latest advances and future directions are targeted. Major progress is novel fungal enzyme development and design, transcriptomics and metabolomics pathway mapping of biodegradation, and CRISPR/Cas9-based strain improvement. Hybrid technologies that integrate mycoremediation with phytoremediation, electrokinetic remediation, and nanobioremediation are presented as mechanisms to maximize contaminant removal and scalability. Challenges persist in translating laboratory success to heterogeneous field environments, optimizing the production of the inoculum, and minimizing ecological risk. The chapter is also keen to highlight the significance of interdisciplinarity, regulatory measures, and public engagement in guaranteeing safe adoption. In addition to pollution cleanup, mycoremediation helps sequester carbon, enhance soil health, and promote climatic resilience, all of which are aligned with the United Nations’ sustainability agenda. The argument not only places mycoremediation as a green technology but also as a driver for the development of a circular bioeconomy and mainstreaming climate policy.