The increasing growth of agroindustrial activity resulting in excessive amounts of agriwaste has led to the accumulation of a large quantity of lignocellulosic residues all over the world, in particular in deforestation initiatives for the removal of invasive trees in South Africa. These lignocellulosic residues are rich in energy resources and consist of a mixture of natural polymers based on lignin, cellulose, and hemicellulose. The use of lignolytic fungi such as mushrooms in solid-state fermentation could sufficiently degrade the indigestible lignocellulosic components and add medicinal and nutritional value to otherwise unusable, high-energy waste material, which in turn could yield a new method of producing energy-rich fodder for ruminant animals. The digestive type of animal for which the potential feed is developed must be identified and considered before deciding on the bioconversion method and process, as the outcomes for obtaining potentially high-quality feeds for nonruminant and ruminant animals are different. The current study presents data on the bioconversion of lignocellulosic substrate using solid-state fermentation with edible and medicinal mushrooms, Ganoderma lucidumand Pleurotus ostreatus, and a possible new species, to increase digestibility and nutritional value to be applied as ruminant animal feed. The solid-state fermentation process was optimized and the resulting product was analyzed for the degradation of the lignocellulosic components. Results indicated that the solid-state fermentation duration and mushroom species were key components in achieving significant degradation. Data obtained after 18 weeks of degradation indicated a significant (p < 0.05) reduction in the acid detergent fiber, acid detergent lignin, and neutral detergent fiber fractions of the biomass, with up to a 20% reduction in indigestible components. This increase in digestibility could contribute to increased energy availability for ruminant animals.