Basidiomycetous fungi are one of the most potent biodegraders because many of its species grow on dead wood or litter, in environments rich in lignocellulose. For the degradation of lignocellulose, basidiomycetes utilize their lignocellulytic enzymes, which typically include laccase (EC 1.10.3.2), lignin peroxidase (EC 1.11.1.14), xylanase (EC 3.2.1.8), and cellulase (EC 3.2.1.4). In recent years, the practical applications of basidiomycetes have ranged from the textile to the pulp and paper industries, and from food applications to bioremediation processes and industrial enzymatic saccharification of biomass. Recently, spent mushroom substrates of edible mushrooms have been used as sources of bulk enzymes to decolorize synthetic dyes in textile wastewater. In this review, the occurrence, mode of action, general properties, and production of lignocellulytic enzymes from mushroom species will be discussed. We will also discuss the potential applications of these enzymes