Auricularia is a key genus among edible macrofungi, sourced as either wild or cultivated mushrooms. Auricularia species are utilized as nutrient-rich foods and medicinal resources, with particular prominence in Traditional Asian Medicine. Cultivated Auricularia species can be grown under a wide range of conditions, allowing for production volumes worldwide. Although Auricularia species are used predominantly within the food industry, there is strong potential for their use in the production of therapeutic drugs, thus making it necessary to identify relevant bioactive compounds and further our understanding of its pharmacological properties. Carbohydrates are the major nutritional constituent of edible Auricularia species in addition to proteins, fat, fibre, ashes vitamins and minerals. This review discusses polysaccharides as one of the major active compounds found in edible Auricularia species in relation to their nutritional value, extraction methods, and pharmacological properties. Current methods of evaluating the pharmacological effects of compounds derived from Auricularia include in vitro assays, in vivo animal models, as well as several human clinical trials. Potential medical applications for these compounds include the production of novel therapeutic drugs for treating diseases such as cancer, diabetes, and cardiovascular disorders.