All over the world, due to the extensive use of pesticides in the agriculture sector, the soil gets contaminated and polluted. In the agriculture field, the pyrethroid pesticide cypermethrin is extensively used to control cotton, vegetables, and fruit insects. Cypermethrin is harmful for the atmosphere, human beings, and animals, along with having exerted detrimental effects on the nervous and reproductive system. Cypermethrin is moderately toxic to the skin and also negatively affects health, such as neurotoxicity and reproductivity. The toxicity of cypermethrin may also lead to death. Due to the very slow degradation rate, low water solubility, and nonpolar nature, the residues of cypermethrin can persist in soil for a longer period with a significant threat. The metabolite of cypermethrin, 3-phenoxy benzoic acid, is also hazardous to humans and surroundings, in addition to causing serious widespread soil and groundwater pollution. Therefore, there is a need to identify and remove such hazardous chemicals. Bioremediation is the best alternative, which is the most effective, inexpensive, and eco-friendly method. This chapter shows an overview of the current status of biodegradation of cypermethrin in soil and simultaneously also highlights applications of the bioremediation process, which converts cypermethrin and 3-PBA into simple and harmless substances, which play a key role in protecting human lives and the environment. Fungi play a major role in the bioremediation of cypermethrin and 3-PBA contaminating soil. Fungi are more efficient than bacteria because fungi are critical to the biogeochemical cycle and responsible for the bulk of the degradation of xenobiotics like cypermethrin.