The ability to produce a variety of enzymes enables the fungi to act as bioremediators of xenobiotic compounds. Xenobiotics are extensively used in drugs, medicines, beauty products, hormones, detergents, fire retardants, building materials, etc. Due to their longevity, persistency, and bioavailability, xenobiotics are a source of public outcry. Xenobiotics are resistant to natural degradation processes and hence their persistence in the environment can lead to bioaccumulation in the food chain, disruption of microbial ecosystems, and long-term toxic effects on flora and fauna. Such compounds are when exposed to living beings including human beings, produce several detrimental health effects. It is evident that fungi have the necessary metabolic machinery to remove different types of xenobiotics from different components of environments. This paper discusses about a variety of fungal species that can effectively degrade xenobiotics, their enzymatic potentials as well as possible mycoremediation techniques. Additionally, this paper also discusses about the need for implementing mycoremediation, controlling xenobiotics at their source, and future prospects in this field.