The bioconversion of lignocellulose crop residues to food, feed and useful products using mushroom fungi mainly white-rot is an eco-friendly and sustainaple technology. The huge quantities of lignocellulosic wastes can be used as substrates to grow different types of edible mushrooms with greater biological efficiency. The holocellulose are utilized by fungal cultures for their growth and fruiting body formation. The spent substrate would serve as ruminant feed or soil-ameliorant and can be used for SCP production, biogas generation and paper/card-board manufacture. There is enormous scope to enhance edible mushroom production using biotechnological innovations such as designing and breeding new strains of mushroom for higher yield and better quality, better cultivation techniques wlth efficient bioreactors and preservation of the production strains.