Advances, problems, and prospects of genetic transformation of fungi are described. Features distinguishing fungi from other organisms are analyzed. Those features should be taken into consideration while preparing genetic material for transformation. The ways to overcome problems associated with hyphae apical growth, cell wall thickness, the heterokaryotic life cycle stage, and mechanisms of immune defense are described. A comparative analysis of major methods for transformation of fungi at different stages of their life cycle was performed. Stability of genetically modified fungi and advances in transformation are discussed.