Edible mushroom is a kind of macrofungi with different varieties, which is rich in nutrition and has delicious taste and abundant active substances. Some significant breakthroughs have been made for the breeding and industrialized cultivation techniques of edible mushroom in the last ten years in China, leading to the rapid increase of edible mushroom production. However, fresh edible mushroom is still the main consumption pattern in China, which accompanied with the weak processing chain, low processing rate, less processed products, and low-value products of edible mushroom. These lead to the overstock of fresh mushroom and the instability for mushroom industry. Less profits of edible mushroom during foreign exports and domestic market seriously restrict the further development of the edible mushroom industry. This article has reviewed the main problems and the current development situation of the edible mushroom industry in China, and then analyzed the development tendency and prospects for the edible mushroom processing industry. This paper will provide guidances for the stable and healthy development of edible mushroom industry in future.