Invasive alien weeds pose severe ecological, agricultural, and socio-economic challenges across India, threatening biodiversity, ecosystem services, and crop productivity. Conventional management approaches, including mechanical removal and chemical herbicides, have demonstrated limited long-term effectiveness and are increasingly constrained by concerns related to environmental safety, herbicide resistance, and economic sustainability. In this context, mycoherbicides—bioherbicides derived from phytopathogenic fungi—represent promising alternatives for invasive weed management. Recent advances have shifted emphasis from live fungal inocula toward cell-free broth formulations containing fungal metabolites, enzymes, and phytotoxins. These next-generation formulations offer improved biosafety, enhanced shelf-life, greater formulation stability, and more consistent field performance compared to conventional microbial products. This review synthesizes published scientific literature, policy documents, and market analyses to critically examine the current status of mycoherbicide research in India, with particular emphasis on major invasive weeds such as Lantana camara and Parthenium hysterophorus. The paper evaluates technological progress, ecological relevance, regulatory frameworks, and market prospects, while identifying key constraints limiting large-scale adoption. Strategic pathways for commercialization are discussed in the context of forestry management, organic agriculture, plantation systems, and climate-smart land-use initiatives. By integrating biological, policy, and market perspectives, this review highlights opportunities for translating laboratory research into scalable weed management solutions and underscores the need for coordinated efforts among researchers, regulators, and industry stakeholders to mainstream mycoherbicides in sustainable weed management programs in India.