A Comprehensive Review on Edible and Medicinal Mushrooms Diversity and Multifunctionality in Global Food Systems for the Circular Bioeconomy

Fungi contribute to one of the most diverse and ecologically important kingdom, yet their actual diversity and functional roles remain substantially under-documented. The current global scenario suggests that approximately 2.2–3.8 million fungal species may exist, while fewer than 10 percent have been formally described to date. Within this kingdom, macrofungi (mushrooms) constitute a conspicuous but taxonomically complex group that underpins forest productivity, nutrient cycling, plant health and multiple bioeconomy sectors. This review synthesises the current state of knowledge on fungal diversity, with particular emphasis on mushrooms and their ecological, evolutionary and functional significance. It covers taxonomy and systematics, ecological guilds (including saprotrophic, mycorrhizal and parasitic), biogeographic patterns and ecosystem functions. It also examines edible and medicinal mushroom resources, global and Indian production trends, supply chain issues, and emerging applications in bioremediation and the circular bioeconomy. The review also examines macrofungal diversity in India, particularly within the Western Ghats and Himalayan biodiversity hotspots, where many taxa remain poorly documented despite the accelerating rate of habitat change. Furthermore, the review concludes with key research gaps, methodological advances such as environmental DNA (eDNA) and high-throughput sequencing and priorities for conserving fungal habitats and underground mycorrhizal networks. This article highlights the pivotal role of mushrooms as integral components of global biodiversity, sustainable food systems and emerging climate resilience strategies.