Anthropogenic activities, compounded by climate change, are rapidly accelerating the degradation of natural ecosystems, making ecological restoration an urgent global priority. Conventional approaches have largely focused on reintroducing native species, reforestation, wetland rehabilitation, and erosion control. However, emerging scientific insights highlight the significant ecological role of mushrooms and the reproductive structures of fungi in ecosystem recovery. Once overlooked, mushrooms are now increasingly recognized as vital natural allies in environmental restoration. This chapter examines the multifaceted role of mushrooms in ecological restoration, with a focus on their contribution to nutrient cycling, enhancement of soil structure, suppression of plant pathogens, regulation of water dynamics, and formation of beneficial symbiotic relationships with plants. A particular emphasis is placed on mycorestoration-a fungal-based restoration method involving the enzymatic and physical breakdown of both organic and inorganic pollutants by different fungi. Field experiments and case studies not only demonstrate the ability of fungi to facilitate vegetation growth in degraded landscapes but also indicate their role in improving the diversity and function of soil microbiomes. These humble species aid in the detoxification of pollutants such as petroleum hydrocarbons and heavy metals. Spent mushroom substrate (SMS) and spent mushroom compost (SMC), the leftover materials from the cultivation of mushrooms, are widely employed for their effectiveness as biofertilizers, soil conditioners, and tools for carbon sequestration. Economically, mushroom-based restoration is a superior practice, which offers not only a low cost but also an environmentally sustainable alternative to traditional remediation approaches. Besides reducing dependency on chemical inputs, these processes create value-added by-products, in addition to promoting rural employment. Despite the plentiful advantages, challenges remain in selecting appropriate fungal species, scaling up implementation, integrating fungal approaches into policy, and overcoming cultural barriers to acceptance. This chapter highlights mushrooms as vital ecological engineers and calls for their greater integration into restoration ecology practices and policies.