Ensuring sustainability has increasingly become a significant concern not only in aquaculture but in the general agrifood sector. Therefore, it is imperative to investigate pathways to feed substitutes/best practices to enhance aquaculture sustainability. The application of fungi in aquaculture provides innovative methods to enhance the sustainability and productivity of aquaculture. Fungi play numerous roles in aquaculture, including growth, immunity enhancement and disease resistance. They also play a role in bioremediation of waste and bioflocculation. The application of fungi improves the suitability and utilization of terrestrial plant ingredients in aquaculture by reducing the fibre fractions and anti-nutritional factors and increasing the nutrients and mineral contents of plant ingredients. Fungi are good flotation agents and can enhance the buoyancy of aquafeed. Pigments from fungi enhance the colouration of fish fillets, making them more attractive to consumers. This paper, via the relevant literature, explores the multifaceted roles of fungi in aquaculture, emphasizing their potential to transform aquaculture through environmentally friendly and sustainable techniques. The effectiveness of fungi in reducing fibre fractions and enhancing nutrient availability is influenced by the duration of fermentation and the dosage administered, which may differ for various feed ingredients, making it difficult for most aquaculture farmers to apply fungi approximately. Therefore, the most effective dosage and fermentation duration for each feed ingredient should be investigated.