Signaling pathways in fungi offer a profound avenue for harnessing cellular communication and have garnered considerable interest in biomaterial engineering. Fungi respond to environmental stimuli through intricate signaling networks involving biochemical and electrical pathways, yet deciphering these mechanisms remains a challenge. In this review, an overview of fungal biology and their signaling pathways is provided, which can be activated in response to external stimuli and direct fungal growth and orientation. By examining the hyphal structure and the pathways involved in fungal signaling, the current state of recording fungal electrophysiological signals as well as the landscape of fungal biomaterials is explored. Innovative applications are highlighted, from sustainable materials to biomonitoring systems, and an outlook on the future of harnessing fungi signaling in living composites is provided.