Over a million tons of spent mushroom substrate (SMS) are generated as by-products of mushroom cultivation every year in Korea. Disposal of SMS by mushroom farmers is difficult, therefore, recycling solutions that do not harm the environment are necessary. SMS consists of mushroom mycelia and residues of fruiting bodies, containing a variety of bioactive substances, such as extracellular enzymes, antimicrobial compounds, and secondary metabolites. This paper reviews utility of SMS for bioremediation, controlling plant disease, and production of lignocellulytic enzymes, organic fertilizer, and animal feed.