Objective: In recent decades, rural areas have faced challenges that threaten their survival, making them increasingly reliant on innovation and new methods. As a result, rural development is now more closely tied to entrepreneurship and tourism. Combing these two activities to create sustainable products is a practical approach that can support rural growth, raise awareness of sustainability, and reduce environmental impact. This paper introduces production and application of mycelium bio-composites as a way of revitalizing rural areas. Method: This paper is a review study based on open-access sources, examining the properties, production methods, advantages and limitations of mycelium bio-composites. It also evaluates their potential for promoting rural tourism and entrepreneurship, highlighting their applicability in sustainable development initiatives. Results: Research into mycelium bio-composites is relatively new. While many of their potentials remain unexplored and some challenges unresolved, existing studies have provided valuable data on material properties, production processes, and commercial uses such as packaging, insulation panels, wall and floor tiles, and furniture. Additionally examining rural entrepreneurship, tourism, and the potential in agriculture, timber, and mushroom cultivation, highlights the opportunity of using mycelium-based bio-composites for sustainable rural development. Conclusions: Mycelium bio-composites are highly promising materials that, in their basic form, possess properties similar to polystyrene foam, MDF boards, and particle boards. Their main advantage lies in the use of renewable raw materials, low energy consumption for production, and the absence of environmentally harmful substances such as plastics and synthetic adhesives. However, challenges such as consumer acceptance, the inherent variability in material properties due to their biological nature, and the need for standardized production guidelines still exist