<i>Pleurotus citrinopileatus</i>, also known as golden oyster mushroom, is a newly industrialized edible mushroom mainly distributed in East Asia. It is a kind of saprophytic edible fungus with strong degradation characteristics, commonly found on fallen trees and stumps of broad-leaf tree species. So far, abundant kinds of bioactive compounds such as polysaccharides, ergothioneine, sesquiterpenes, and glycoprotein have been isolated from <i>P. citrinopileatus</i> and studied. Studies have confirmed that these compounds are beneficial to human health. In this paper, the recent studies on the cultivation, degradation characteristics application, and health effects of <i>P. citrinopileatus</i> are reviewed, and their development trends are discussed.