Abstract: The nutraceutical potential of mushrooms is gaining gradual recognition and mushroom as such is becoming a crucial part of the diet. Mushrooms have various health benefits to offer and this article concentrates on the nutritional compositions and potential health benefits of mushrooms. The presence of bioactive compounds in edible mushroom helps to enhance their nutraceutical value. Mushrooms have versatile health benefits due to the presence of vitamins, minerals and antioxidants. Various mushroom products are gaining popularity because of their immense health benefits and eco-friendly packaging techniques. Patents filed for innovation in mushroom products and processes gives an assurance for the future of mushroom industries. Keywords: Mushrooms, nutraceutical potential, bioactive compounds, health benefits, antioxidants, packaging.