Mushrooms are well known as important food items. The uses of mushrooms in the cuisine are manifolds and are being utilized for thousands of years in both Oriental and Occidental cultures. Medicinal properties of mushrooms show an immense potential as drugs for the treatment of various diseases as they are rich in a great variety of phytochemicals. In this review, we attempted to encompass the recent knowledge and scientific advancement about mushrooms and their utilization as food or curative properties, along with their natural ability to accumulate (heavy) metals/radionuclides, which leads to an important aspect of bioremediation. However, accumulation of heavy metals and radionuclides from natural or anthropogenic sources also involves potential nutritional hazards upon consumption. These hazards have been pointed out in this review incorporating a selection of the most recently published literature.