Mycelium-based bio-composites (MBCs) represent a sustainable and innovative material with high potential for contemporary applications, particularly in the field of modern interior design. This research investigates the fabrication of MBCs for modern interior materials using agro-industrial wastes (bamboo sawdust and corn pericarp) and different fungal species. The study focuses on determining physical properties, including moisture content, shrinkage, density, water absorption, volumetric swelling, thermal degradation, and mechanical properties (bending, compression, impact, and tensile strength). The results indicate variations in moisture content and shrinkage based on fungal species and substrate types, with bamboo sawdust exhibiting lower shrinkage. The obtained density values range from 212.31 to 282.09 kg/m3, comparable to traditional materials, suggesting MBCs potential in diverse fields, especially as modern interior elements. Water absorption and volumetric swelling demonstrate the influence of substrate and fungal species, although they do not significantly impact the characteristics of interior decoration materials. Thermal degradation analysis aligns with established patterns, showcasing the suitability of MBCs for various applications. Scanning electron microscope observations reveal the morphological features of MBCs, emphasizing the role of fungal mycelia in binding substrate particles. Mechanical properties exhibit variations in bending, compression, impact, and tensile strength, with MBCs demonstrating compatibility with traditional materials used in interior elements. Those produced from L. sajor-caju and G. fornicatum show especially promising characteristics in this context. Particularly noteworthy are their superior compression and impact strength, surpassing values observed in certain synthetic foams multiple times. Moreover, this study reveals the biodegradability of MBCs, reaching standards for environmentally friendly materials. A comprehensive comparison with traditional materials further supports the potential of MBCs in sustainable material. Challenges in standardization, production scalability, and market adoption are identified, emphasizing the need for ongoing research, material engineering advancements, and biotechnological innovations. These efforts aim to enhance MBC properties, promoting sustainability in modern interior applications, while also facilitating their expansion into mass production within the innovative construction materials market.