Forestry biomass, the most abundant renewable resource on Earth, is an untapped source of energy and material. Biorefinery practices are still inefficiencies, leading to waste and reduced sustainability. This project proposes an integrated biorefinery approach, leveraging advanced fungal biotechnology to repurpose underutilized forestry biomass into innovative biobased materials and enzymes, while exploring the further biorefinery of novel fungal fibers from mycelium-based biomass generated. Wood-decay fungi (WDF), primarily from Basidiomycota, prove pivotal in efficiently utilizing forestry biomass, breaking down its components and serving as a bonding matrix for particles. The resulting lignocellulosic enzymes find applications in biorefinery processes and material modifications, while fungal mycelia directly convert biomass into biocomposite materials, offering strength and cohesion. These biobased materials, with their low energy production and full biodegradability, align with the principles of a circular economy, minimizing waste and maximizing resource value.