Mushrooms have been consumed over years as a part of human diet. Due to the therapeutic value of mushroom, it is categorized as a functional food with the property of disease prevention in humans. The presence of biologically active compounds having different medicinal properties provides an opportunity to develop edible mushrooms into functional foods with enhanced nutritional value and numerous health benefits. Mushrooms have cardiovascular, antidiabetic, and immune-modulating properties in order to prevent the risk of cancer and control blood sugar level with substantive antioxidant activity, which are recorded in both wild as well as cultivated species. Various bioactive compounds in mushrooms like phenolics and alkaloid and organic acid contents have the ability to inhibit lipooxidase enzymes, scavenge free radicals, and capture metals and thus contribute to the antioxidant property of mushrooms. Due to the antioxidant properties of the phenolic compounds which are present in mushrooms, there is ample scope for the provision of a lot of health benefits. Flavonoids constitute the major proportion of phenolic compounds present in mushrooms. The bioactive compounds of mushrooms which are responsible for producing various therapeutic effects are commonly obtained from their fruiting bodies. The content and concentration of these bioactives depends upon the cultivation technique, extraction method, and the type of bioactive component. © Springer Nature Singapore Pte Ltd. 2020