The article reviews the biologically active secondary metabolites produced by white-rot fungi, which are known for their ability to decompose all components of wood. These fungi play a crucial role in the carbon and nitrogen cycles by decomposing non-living organic substrates. The review highlights the diverse bioactive properties of these metabolites, including antimicrobial, anticancer, antioxidant, and immunomodulatory effects. Key species such as *Schizophyllum commune* and *Pleurotus ostreatus* are discussed for their potential in pharmaceuticals, biobleaching, wastewater treatment, and nutraceuticals. The article also explores the chemical structures and biological activities of specific metabolites, emphasizing their potential in various applications. Overall, the review underscores the significant potential of white-rot fungi as a source of valuable biologically active compounds.The article reviews the biologically active secondary metabolites produced by white-rot fungi, which are known for their ability to decompose all components of wood. These fungi play a crucial role in the carbon and nitrogen cycles by decomposing non-living organic substrates. The review highlights the diverse bioactive properties of these metabolites, including antimicrobial, anticancer, antioxidant, and immunomodulatory effects. Key species such as *Schizophyllum commune* and *Pleurotus ostreatus* are discussed for their potential in pharmaceuticals, biobleaching, wastewater treatment, and nutraceuticals. The article also explores the chemical structures and biological activities of specific metabolites, emphasizing their potential in various applications. Overall, the review underscores the significant potential of white-rot fungi as a source of valuable biologically active compounds.