Polycyclic aromatic hydrocarbons (PAHs) are a group of chemicals with potential carcinogenic, teratogenic and mutagenic effects, and are mainly produced out of incomplete combustion of biomass and fossil fuel. Excessive PAHs releasing into the atmosphere may accumulate in the soil through deposition, resulting in soil pollution. Currently the techniques available for bioremediation of PAHs-contaminated soils are mostly based on the degradation function of bacteria, while the potential of fungi in soil remediation is not yet fully understood. Fungi are important components of the soil ecosystem and extremely high in diversity. Quite a number of strains of fungi, mainly Basidiomycete and Ascomycete, are capable of degrading PAHs with their intracellular cytochrome P450 or extracellular ligninolytic enzymes. And some form Mycorrhizal symbiont with plant roots, which may degrade PAHs synergistically. Thanks to the feature of fungi degrading PAHs, they have their unique advantage in reducing the concentration and ecotoxicity of PAHs in soil. In this review, an overall introduction is presented to the diversity of PAHs-degrading fungi, and their PAHs-degrading mechanism, as well as the fungal remediation techniques currently available. In addition, the concerns and problems associated with fungal remediation are discussed and prospect of its development is predicted.