Pleurotus mushrooms are the third largest commercially produced and the second most important cultivated mushroom in the world, consisting of about 539 species. This comprises 25% of total world production of cultivated mushrooms. Pleurotus mushrooms possess various nutritional and medicinal values. The fruitbodies of Pleurotus are rich in unique flavor and nutrients such as carbohydrates, protein, vitamins, minerals and dietary fibers. Bioactive compounds such as lectin, proteoglycans, laccase, lovastatin, phenols and uridine present in Pleurotus have shown some anti-tumor, anti-cancer, anti-bacterial, anti-fungal, anti-viral, anti-inflammatory, genoprotective, anti-oxidant, immuno-modulatory, anti-diabetic, anti-allergic, antimitogenic, anti-hypertensive and anti-hypercholesterolemic properties. The major nutritional and medicinal benefits of important Pleurotus species are discussed in the present review.