Diabetes mellitus (DM) is a chronic metabolic disorder with the feature of hyperglycemia, which has severely endangered human health. Edible fungus polysaccharides (EFP), which has great development potential, have attracted enormous attention since their natural and safe characteristics as well as obvious benefits against diabetes. This review summarized the hypoglycemic effect of EFP and the underlying mechanism against diabetes by inhibiting digestive enzyme activity, increasing insulin sensitivity and resistance, improving pancreatic function and lipid metabolism, alleviating oxidative stress and inflammation, regulating gut microbiota and signal transduction. In addition, the relationships between structure and hypoglycemic activity as well as future prospect of EFP were also discussed. This current review provides valuable insights for readers and healthcare professionals developing preventive and therapeutic of diabetes and development of functional products or foods of edible fungi in the future.