Fungi in general are the most diverse group of eukaryotic organisms which are useful in various health, pharmaceutical and industrial sectors. However, fungi, being heterotrophic, are detrimental to various sectors but extremely useful as they touch every facet of human life. Being macroscopic, they draw the attention of common people as well as researchers for various reasons. The edible mushrooms are well known and many species are successfully cultivated, making them the basis of a billion-dollar industry worldwide. This chapter focuses on pigments produced by the macrofungi and their industrial applications. Besides, it highlights the technical aspects, like economic feasibility of large-scale production. Some case studies of select macrofungi are also discussed with reference to the textile and wood industries. Other potential bioactivities of pigments like antimicrobial, antimalarial, antileishmanial antiviral, anticancer, antioxidants, cytotoxicity and applications in optoelectronics, bioremediation and other aspects are also covered.