Mushrooms had long been used for medicinal and food purposes since decades. It is now increasingly recognized that correct diet, controls and modulates many functions of human body and consequently participates in the maintenance of state of good health, necessary to reduce the risk of many diseases. Modern pharmacological research confirms large parts of traditional knowledge regarding the medicinal effects of mushrooms due to their antifungal, antibacterial, antioxidant and antiviral properties, besides being used as functional foods. This paper sums up diverse beneficial health effects of mushrooms to humans, in the form of proteins, carbohydrates, fats, vitamins, minerals, food and drugs, and medicines.