Intensive crop production, use of pesticides, and unsustainable farming practices are known to cause land degradation and soil contamination. Both have led to a decline in biodiversity and changes in the functional groups of soil microorganisms. Although physicochemical methods have been used to apply soil amendments to agricultural land, mushroom cultivation in agricultural land for soil improvement have been poorly studied. In-field mushroom cultivation is considered a good strategy for improving soil quality by reducing the input of chemical fertilizers. In this paper, we list the edible mushroom species suitable for growing in fields and summarize the important role that mushroom field cultivation can play in soil erosion control, nutrient cycling, and the bioremediation of contaminants. Decomposition, symbiosis, assimilation, degradation, bioweathering, oxidation, biosorption, and bioconversion are all critical components of mushroom field cultivation. Research has shown that field mushroom cultivation contributes to nutritional bioavailability while also promoting the degradation of pollutants and formation of soil aggregates. Through soil amendment practices, a portion of agricultural waste can be converted into high-quality food and nutraceutical sources, and the remaining organic matter improves soil quality via fungal mycelial networks and the re-use of spent mushroom substrates. Only a small number of mushroom species have been used in the application of soil amendments in field conditions. This review shows the need for further research into specific mushroom species for achieving different soil amendment goals in order to balance agricultural development with sustainable land management.