A fungal extract obtained from an edible species (Tricholoma terreum) was used to produce chitosan-based films. Fungal extracts were analyzed using HPLC and chitosan-based films were characterized with FT-IR, SEM, DSC and TGA analysis. High phenolic content was found in the fungal extracts using HPLC. FT-IR results showed that fungal extracts were successfully added into the chitosan films. The addition of fungal extract increased elasticity, hydrophobicity and antioxidant and antimicrobial activity of the chitosan films. Additionally, anti-quorum sensing and antimicrobial activities of chitosan-fungal extract films were found to be much higher than gentamicin (a commonly used antibiotic). However, incorporation of extracts into chitosan films decreased transparency and thermal stability. All these results suggested that chitosan-fungal extract films might be beneficially used to improve food packaging technology.