Many species of medicinal mushrooms have been used in folk medicine for thousands of years. The use of medicinal mushrooms in folk medicine, is best documented in the East. Medicinal mushrooms are now the subject of study for many ethnobotanists and medical researchers. The ability of some mushrooms to inhibit tumor growth and enhance aspects of the immune system has been a subject of research for approximately 50 years.[1] In the span of this time, compounds from more than 200 different species of mushrooms were found to possess anti-cancer activity.[2] International mushroom research continues today, with a focus on mushroom's that may have hypoglycemic activity, anti-cancer activity, anti-pathogenic activity, and immune system enhancing activity.

Recent research has found that the oyster mushroom naturally contains the cholesterol drug lovastatin,[3] mushrooms produce large amounts of vitamin D when exposed to UV light,[4] and that certain fungi may be a future source of taxol.[5] In the past, research conducted with fungi has led to the discovery of penicillin, lovastatin, ciclosporin, griseofulvin, cephalosporin, and ergometrine.