Throughout old history, mushrooms are considered a rich source of many important phytonutrients such as polysaccharides and other nutrients, in addition to many essential amino acids, which are building blocks of vital proteins. In overall, mushrooms offer a wide range of health benefits with a large spectrum of pharmacological properties, including antidiabetic, antioxidative, antiviral, antibacterial, nephroprotective, hepatoprotective and others. Both wild edible and medicinal mushrooms possess strong therapeutic and biological activities. The multifunctional activities of the mushroom extracts and the targeted potential of each of the compounds in the extracts have a wide-ranging of applications, especially in anti-hair loss and anti-ageing skin. This review aims to provide a clear insight on mushrooms natural bioactive compounds, and their extracts are whichever presently used or original to be used as cosmetics products for their antioxidant, anti-aging, anti-wrinkle, skin whitening, moisturizing effects and anti-Hair loss. Future outlook and prospective challenges.