Hericium erinaceus is valuable for both pharmacopoeia and edibility. Polysaccharides of Hericium erinaceus have been isolated from fruit-bodies or mycelium or fermented liquor by many researchers recently. Researches in medicine and pharmacology have proved that polysaccharides of Hericium erinaceus have certain therapeutical effects on improving immunity, restraining cancer and senescence, reducing blood sugar, and so on. In this review, the methods of extraction, isolation and purification were reviewed and the latest research development of composition, structural analysis, biological activity and development prospect of polysaccharides isolated from Hericium erinaceus were elaborated also.