Mycoremediation, using fungi for environmental detoxification of xenobiotics, is a versatile and multidisciplinary biotechnology with potential to deal with contamination problems globally. Although this approach offers several advantages over classical remediation methods (cost efficiency, environmental compatibility, and substrate versatility), the use of mycoremediation is hindered by several bottlenecks that prevent its large-scale application. This review seeks to address key limitations of efficient mycoremediation, which range from fungal strain selection and optimization through environmental parameters issues, scalability of the technology, regulatory obstacles, and technical limitations. Based on the existing research results and cases, this article analyzes some of the key barriers that need to be addressed and makes recommendations for breaking these bottlenecks. The critique encompasses both scientific platform issues and implementation hurdles, which suggest future research directions to enhance the efficiency and cost-effectiveness of mycoremediation approaches.