Annual losses in both agricultural and economic sectors have increased dramatically because of insect pests; hence, the effects of these pests pose a major global threat. In addition, some control methods currently used to combat insect pests are no longer as effective due to the continuous evolution in resistance and to the serious damage of these control approaches on the ecological system. Therefore, there is an urgent need to find new avenues that are more effective and environmentally friendly. In the search for novel, effective, and natural insecticides, many mushroom species are substantial sources of biologically active compounds, including those that possess insecticidal activities. This review illustrates the potential role of mushrooms as promising and powerful bioinsecticidal agents.