Abstract: In recent years,natural resources have attracted much attention for their great potential in exploiting new bioactive substances. Edible mushroom was widely distributed,rich in nutrients,and has many pharmacological effects such as anti-inflammatory,anti-tumor,antibacterial and so on. The terpenoids have a wide range of sources and a wide variety of species. They are the most abundant natural materials. A large number of studies have shown that terpenoids in edible mushroom have a variety of biological activities and have important development and utilization value in the pharmaceutical industry. In this paper,the anti-inflammatory,anti-tumor,anti-oxidation and antibacterial bioactivities of terpenoids in edible mushroom were reviewed,and the development and utilization of edible mushroom were prospected.