Mushrooms, particularly white-rot fungi such as Pleurotus ostreatus, Trametes versicolor and Ganoderma lucidum, possess diverse enzymatic systems such as laccases, manganese peroxidases, and lignin peroxidases that enable them to decompose a wide range of persistent organic pollutants, including hydrocarbons, pesticides, synthetic dyes, and emerging contaminants. Though mushrooms effectively transform or immobilise contaminants in soil and aquatic systems through enzymatic biodegradation, biosorption, and bioaccumulation, mycoremediation offers a cost-effective, eco-friendly alternative to conventional methods that are often expensive and generate secondary waste. The chapter discusses successful applications of mushrooms in degrading oil spills, remediating heavy metal-contaminated soils, treating agricultural residues, and removing colourants from industrial effluents. Additionally, the emerging role of fungi in addressing pollutants such as microplastics, nanomaterials, and endocrine-disrupting compounds is explored, showcasing the adaptability of fungal systems in complex contamination scenarios. Fungi not only break down pollutants but also enhance soil health and promote ecosystem recovery. Technological innovations such as enzyme immobilisation, microbial consortia, and artificial intelligence-assisted bioprocesses are further expanding the scope and efficiency of fungal remediation strategies. The chapter emphasises the need for interdisciplinary approaches to optimise fungal performance in real-world settings, considering variables like nutrient balance, redox conditions, and pollutant complexity. As global environmental challenges escalate, mushrooms offer a scalable and sustainable solution with dual benefits: pollution mitigation and potential co-products such as edible or medicinal biomass. Ultimately, this chapter advocates for the integration of fungi into environmental policy and practice, presenting them as vital allies in the pursuit of a cleaner, healthier, and more resilient planet.