Mushroom Phallus impudicus is traditionally used in Asia and Northern Europe as a remedy of folk medicine. This review summarizes our own results on the artificial cultivation of the P. impudicus mycelium and some data on the study of the biological activity of polysaccharides isolated from this mycelium. The cultural-morphological and physiological-biochemical properties of the mycelium of the new fungal strain of P. impudicus were studied. The optimization of the nutrient medium composition and cultural conditions enabled to increase the biomass yield by 1.3-fold, and the contents of polysaccharides by 1.5 to 1.7-fold. The polysaccharides isolated from this mycelium possessed immunomodulating properties in vitro as well as in vivo in experimental rats with streptozotocin-induced diabetes. The ointment containing 10% P. impudicus polysaccharides enhanced cutaneous wound healing in experimental rats, accelerating epithelialization, contraction and growth of granulation tissue as compared to the ointment base. Taken together, polysaccharides of P. impudicus mycelium are promising raw material for the development of functional food as well as new therapeutic and prophylactic drugs.