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Globally, the quality of agricultural soils is in decline as a result of mismanagement and the overuse of agrichemicals, negatively impacting crop yields. <i>Agaricus subrufescens</i> Peck is widely cultivated as an edible and medicinal mushroom; however, its application in soil bioremediation and amendment remains insufficiently studied. In order to determine if <i>A. subrufescens</i> can positively impact agricultural soils, we designed two experiments: the first, a glasshouse experiment investigating the ways in which <i>A. subrufescens</i> production alters soil nutrients and soil health; the second, a laboratory experiment investigating if <i>A. subrufescens</i> can degrade beta-cypermethrin (β-CY) and glufosinate ammonium (Gla), two widely used agrichemicals. The glasshouse experiment results indicated that the use of compost and compost combined with <i>A. subrufescens</i> led to increases in soil organic matter, nitrogen, phosphorus, and potassium compared to the control treatments (sterilized soil). However, the incorporation of <i>A. subrufescens</i> with compost resulted in significantly greater levels of both available nitrogen and available phosphorus in the soils compared to all other treatments. Laboratory experiments determined that the mycelium of <i>A. subrufescens</i> were unable to grow at concentrations above 24.71 μg/mL and 63.15 μg/g for β-CY and Gla, respectively. Furthermore, results indicated that fungal mycelia were able to degrade 44.68% of β-CY within 15 days, whereas no significant changes were found in the concentration of Gla. This study highlights that cultivation of <i>A. subrufescens</i> may be a sustainable alternative for the rehabilitation of agricultural soils, whilst providing an additional source of income for farmers.