Fungi have provided the world with penicillin, lovastatin, and other globally significant medicines, and they remain an unexploited resource with huge industrial potential. Fungi are an understudied, biotechnologically valuable group of organisms, due to the huge range of habitats that fungi inhabit, fungi represent great promise for their application in biotechnology and industry. This review demonstrate that fungal mycelium as a medium, the vegetative part can potentially be utilized in plastic biodegradation and growing alternative and sustainable materials. Innovative fungal mycelium-based biofoam demonstrate that this biofoam offers great potential for application as an alternative insulation material for building and infrastructure construction.