The fungal bioluminescence pathway (FBP) offers a unique and sustainable system for continuous light emission through self-sustaining, nontoxic substrates. Recent advances in FBP-based substrate engineering, enzyme optimization, and metabolic refinement have enabled the creation of robust autoluminescent plants. Concurrently, the FBP has been repurposed as a quantitative reporter and tracer for biological analysis, while FBP-based plant biosensors are emerging as a promising biotechnology. These developments position the FBP as a powerful and versatile platform with substantial potential. In this review, we outline the current state, ongoing challenges, future prospects, and diverse applications of the FBP system, underscoring its transformative role as a multifunctional biological resource.