The global mushroom industry has experienced significant growth due to its nutritional benefits, increasing market value, and rising consumer demand. Mushrooms are valued for their unique flavor, low sugar and salt content, and rich Vitamin D content. Various preservation techniques, including drying, freezing, canning, high-pressure processing, and modified atmosphere packaging, are employed to extend the shelf life and preserve quality. Advanced technologies such as nuclear magnetic resonance and spectroscopy are improving post-harvest processing, maintaining sensory properties and nutritional content. Automation is transforming mushroom processing by enhancing efficiency and scalability. The review discusses innovative methods and technologies driving advancements in mushroom production and quality worldwide. Traditional processing techniques like drying, pickling, freezing, sterilization, and canning are widely used to extend shelf life and enhance value. Emerging innovative processing methods, including high-pressure processing (HPP), freeze-drying, and advanced packaging techniques, are also explored. These methods help maintain organoleptic and nutritional qualities while extending shelf life. Advanced packaging technologies such as Modified Atmosphere Packaging (MAP), Active Packaging (ACP), Biodegradable Film Packaging (BFP), and Nanocomposite Packaging (NCP) are effective in preserving mushroom quality. Value-added products, such as mushroom powders, snacks, and convenience foods, are developed to enhance nutritional profiles and market appeal. Mushroom by-products are utilized in various industries, including food, pharmaceuticals, and biotechnology, offering sustainable product development opportunities. Fermentation processes, particularly lactic fermentation, are used to preserve mushrooms while enhancing their nutritional value and functional characteristics. Challenges and opportunities in scaling up mushroom fermentation are discussed, emphasizing the need for technological advancements and sustainable practices. Mushrooms are incorporated into various food products, including meat alternatives, soups, pasta, pizza toppings, sauces, bakery items, snacks, dairy and plant-based products, and beverages, contributing to their versatility and nutritional benefits.The global mushroom industry has experienced significant growth due to its nutritional benefits, increasing market value, and rising consumer demand. Mushrooms are valued for their unique flavor, low sugar and salt content, and rich Vitamin D content. Various preservation techniques, including drying, freezing, canning, high-pressure processing, and modified atmosphere packaging, are employed to extend the shelf life and preserve quality. Advanced technologies such as nuclear magnetic resonance and spectroscopy are improving post-harvest processing, maintaining sensory properties and nutritional content. Automation is transforming mushroom processing by enhancing efficiency and scalability. The review discusses innovative methods and technologies driving advancements in mushroom production and quality worldwide. Traditional processing techniques like drying, pickling, freezing, sterilization, and canning are widely used to extend shelf life and enhance value. Emerging innovative processing methods, including high-pressure processing (HPP), freeze-drying, and advanced packaging techniques, are also explored. These methods help maintain organoleptic and nutritional qualities while extending shelf life. Advanced packaging technologies such as Modified Atmosphere Packaging (MAP), Active Packaging (ACP), Biodegradable Film Packaging (BFP), and Nanocomposite Packaging (NCP) are effective in preserving mushroom quality. Value-added products, such as mushroom powders, snacks, and convenience foods, are developed to enhance nutritional profiles and market appeal. Mushroom by-products are utilized in various industries, including food, pharmaceuticals, and biotechnology, offering sustainable product development opportunities. Fermentation processes, particularly lactic fermentation, are used to preserve mushrooms while enhancing their nutritional value and functional characteristics. Challenges and opportunities in scaling up mushroom fermentation are discussed, emphasizing the need for technological advancements and sustainable practices. Mushrooms are incorporated into various food products, including meat alternatives, soups, pasta, pizza toppings, sauces, bakery items, snacks, dairy and plant-based products, and beverages, contributing to their versatility and nutritional benefits.