Button mushroom (Agaricus bisporus) is a most popular edible fungus and the most common variety of mushroom found in cooking worldwide especially in India. It’s characterized by their small, round, and smooth caps which are generally white to light brown. They measure 1–3 inches across and have short stems. It’s also a low-calorie food source having high fiber, protein, vitamins (vit. B), and several minerals like selenium, potassium, and phosphorus. They also contain various antioxidants and are coupled to various health benefits such as improved heart-health and immune system support. Agaricus bisporus is not only a culinary staple but also plays a vital role in sustainable agriculture due to their efficient use of resources and the beneficial by-products they improved soil health. Farming of button mushrooms contributes to sustainable agricultural development in several ways through waste utilization (crop residues), soil health improvement, water conservation, lowering carbon footprint, biodiversity, economic viability, and nutritional value. Agricultural by-products from agricultural biomass and waste used as a substrate for mushroom cultivation will enhance the soil quality with spent mushroom compost, and also there will be efficient use of water resources in mushroom cultivation or farming. There will be low GHG emissions, supporting soil microorganisms and contributing to ecological balance. Button mushroom cultivation will emphasize more on the recycling of resources in food production by offering a source of high-quality protein and nutrients. Integrating mushroom farming into ecological agricultural systems and preserving natural resources by using lignin-rich plant material as a base for mushroom growth. Hence, button mushroom cultivation can promote a more environmentally friendly approach to sustainable agriculture.