Food insecurity, pollution, and malnutrition are some critical issues tackled by the modern world in the recent era. However, edible mushrooms are nutritionally, economically, and biotechnologically valuable groups of macro fungi. Besides being an essential source of edible food, it is also exploited in pharmacological industries as a potential source of anticancer, antioxidant and immunomodulating agents. Mushrooms are not only a rich nutritional source of functional food all over the world, but also have highly significant bioactive compounds that are considered nutraceuticals, cosmeceuticals, and mycotherapeutics across the globe. However, their cultivation is very low compared to their demand. Its cultivation consents the sustainable management of agro-industrial waste and generates decent income using low inputs. Additionally, the mushroom could also be used for the recirculation of forest waste by acting as a natural decomposer that in turn creates great opportunities for the development of economically miserable developing countries, like Pakistan. Mushroom farming is one of the promising approaches to explore such unwanted agro-waste materials from the environment and ensure food security. Mushroom farming is one of the cheapest sources to overcome the deficiency caused by malnutrition. Interestingly, it supports the local economy by offering more and more livelihood opportunities and significant income sources for local and national trade. The current review article emphasizes the prompt mushroom farming industries in Pakistan that can save lives by providing cheaper nutritional food and rich income sources.