Edible mushrooms contain unique flavours and textures. They have high nutritional and medicinal values and have been consumed worldwide. Astraeus hygrometricus (Pers.) Morg. a wild ectomycorrhizal mushroom recognized as a food by the local people in South-East Asia as well as in Bihar, Jharkhand, South west India and South-Western region of West Bengal. However, it is considerably unknown to the communities in other parts of the world and it remains underutilized so far. Recent investigations from our laboratory have manifested the potential role of this mushroom in human health. Basidiocarps of A. hygrometricus are rich in proteins, carbohydrates, minerals, crude fibre and essential amino acids with lower concentration of fat. Experiments on animal models reveal the hepatoprotective, cardioprotective, anti-inflammatory, anticancer and hypoglycaemic efficacy of the mushroom. Additionally, researchers have found this taxon to contain many bioactive compounds shown to be responsible for antitumor, anti-leishmanial, anticandidal, antioxidant and immunomodulatory activity. The present review, summarized the scattered literature on A. hygrometricus with an emphasis on its nutritional and health promoting aspects.