Dermoscopy is a widely used diagnostic tool in dermatological diseases, especially in clinic follow-up and preoperative diagnosis of malignant melanoma and benign skin tumours. The diagnosis of cutaneous fungal diseases was mainly relied on mycological examinations, which is time-consuming and needs professional skills, while positive rate is low. Dermoscopy is easily operating and time-saving, and could be a useful tool in auxiliary diagnosis of cutaneous fungal diseases. It could increase diagnostic accuracy when combined with mycological examinations. The present paper aims to review the latest updates on the application of dermoscopy in cutaneous fungal diseases.