Functional Mushrooms vs Psychedelic Mushrooms: 6 Differences

These days, it seems like everyone is talking about functional mushrooms. They're all you see on HealthTok, they’re all over the wellness side of Instagram, and they even have their own little section in the supplement aisle at your local health store.
With all of the hype, you may be wondering if these are the same mushrooms that make people trip balls. Are functional mushrooms different from psychedelic mushrooms, and are they even legal? Read on for the answers to these questions and more.
What Are Functional and Psychedelic Mushrooms?
Mushrooms can be magical — but not always in the psychedelic sense. The term “functional mushrooms” refers to varieties packed with health benefits — think of them as food with a function.
These include heavy hitters like reishi, lion’s mane, cordyceps, chaga, and turkey tail. Used in traditional medicine for centuries, these fungi can support everything from focus and immunity to endurance and relaxation.
On the flip side, psychedelic mushrooms (a.k.a. magic mushrooms, shrooms, or psilocybin mushrooms) contain psilocybin, a psychoactive compound that alters perception, mood, and cognition. These mushrooms have been used in spiritual and medicinal practices for thousands of years.
More recently, they’ve become the darlings of modern science, with research suggesting their potential for treating depression, PTSD, and anxiety. While functional mushrooms aim to optimize your daily life, psychedelic mushrooms invite you to explore the depths of your mind.
6 Differences Between Functional and Psychedelic Mushrooms
Wait, wait, wait — functional mushrooms and psychedelic mushrooms are all mushrooms, right? So what truly makes them different from each other? Let’s outline the six main differences between these types of mushrooms.
1. Health Benefits
Functional mushrooms contain bioactive compounds like beta-glucans, polysaccharides, and antioxidants — the all-stars of immune support and brain function. These compounds can support immune health, enhance cognitive performance, and promote overall well-being.
For example, lion’s mane can support the production of nerve growth factor (NGF), which may support memory and brain health. At the same time, chaga mushroom is known for its powerful antioxidants that can support immunity.
Psychedelic mushrooms, on the other hand, get their power from psilocybin, which the body converts into psilocin. This compound binds to serotonin receptors in the brain, resulting in altered perception, heightened emotions, and sometimes, a deep existential experience.
Think of it like flipping a switch that temporarily changes the way your brain processes reality. Researchers believe this could help rewire thought patterns, making psilocybin a promising treatment for mental health conditions like depression, addiction, and anxiety.
2. Legal Status
The good news is that functional mushrooms are totally legal. You can find them in health food stores, online, or infused into everything from coffee to skincare. Since they don’t contain any psychoactive substances, they fly under the radar of most regulatory bodies.
Psychedelic mushrooms are where things get tricky. Psilocybin is classified as a Schedule I substance in the U.S., meaning it’s considered to have no accepted medical use and a high potential for abuse (despite emerging research proving otherwise).
However, times are changing. Cities like Denver, Oakland, and Seattle have decriminalized psilocybin, while states like Oregon and Colorado have passed laws allowing for supervised therapeutic use. Meanwhile, countries like Brazil, Jamaica, and the Netherlands have much more relaxed laws, making them hotspots for psychedelic retreats.
3. Consumption Methods
You don’t eat functional and psychedelic mushrooms the same way you’d toss button mushrooms into a stir-fry. These fungi require a little more finesse.
Functional mushrooms come in a variety of forms, including powders, capsules, tinctures, teas, and even coffee blends (like our Mushroom Coffee+). They can be brewed, blended, or stirred into your morning routine without much fuss.
Some people cook with them (lion’s mane has a delicious crab-like flavor), but most prefer to take concentrated extracts to maximize the benefits. Since they don’t have psychoactive effects, you can consume them daily without worrying about unintended mind-bending experiences.
Psychedelic mushrooms, on the other hand, are a bit more of a commitment. They’re usually eaten dried, brewed into tea, or taken in capsule form for controlled dosing. Some enthusiasts blend them into chocolates or smoothies to mask the earthy taste.
Unlike functional mushrooms, psychedelic mushrooms are taken with intention — whether for a spiritual journey, personal growth, or therapeutic healing. Many people follow microdosing protocols (taking tiny, sub-perceptual amounts) to enhance creativity and mental clarity without experiencing a full-blown trip.
4. Safety and Side Effects
Like any wellness trend, it’s important to know what you’re getting into. Luckily, functional mushrooms are generally safe and well-tolerated. The biggest risk is ultra-rare allergic reactions or digestive discomfort. If you’re new to them, start slow and see how your body reacts.
Psychedelic mushrooms require more caution. While they aren’t physically addictive, they can lead to overwhelming psychological experiences if taken in the wrong setting or mindset (and no one wants a bad trip).
Some users report nausea, paranoia, or anxiety, especially at higher doses. There’s also the risk of hallucinogen-persisting perception disorder (HPPD), where visual distortions linger long after the trip ends. That said, when used in controlled environments — like guided therapy sessions — psychedelic mushrooms show promising results for mental health.
5. Cultural and Historical Context
Humans have been vibing with mushrooms for centuries — but for very different reasons. Functional mushrooms have deep roots in Traditional Chinese Medicine, Ayurveda, and Indigenous healing practices.
Cultures across Asia and Europe have long used reishi for longevity, chaga for immunity, and cordyceps for stamina. These fungi were seen as valuable ways to boost health and keep the body in balance.
Meanwhile, psychedelic mushrooms have been tied to sacred rituals and spiritual ceremonies for thousands of years. From the Aztecs’ “flesh of the gods” ceremonies to Indigenous practices in Mesoamerica, these mind-bending mushrooms were considered tools for connecting with the divine — not just trippy party favors.
6. Current Research
Both types of mushrooms are finally getting the scientific spotlight they deserve. Functional mushrooms are being studied for their potential to support brain health, bolster the immune system, and encourage mental health. Early studies show that lion’s mane may support memory and nerve regeneration, while turkey tail could help strengthen the immune system in cancer patients.
On the psychedelic side, research is also heating up — especially around psilocybin’s effects on depression, PTSD, and anxiety. Clinical trials suggest that guided psilocybin sessions could offer long-lasting relief for mental health conditions where traditional treatments fall short. What was once ancient wisdom is now becoming cutting-edge science — with mushrooms leading the charge.
The Bottom Line
Whether you're microdosing or sipping a mushroom latte, there's no denying that mushrooms are having a well-deserved moment. Functional mushrooms offer everyday health benefits without altering your mind, while psychedelic mushrooms are paving the way for breakthroughs in mental health treatment.
As we continue to unlock their full potential, one thing’s clear—mushrooms are the future of wellness, one cup (or trip) at a time. Hop on the functional mushroom train today with a scoop (or two) of our delicious Bold Coffee+.
Sources:
Medicinal Mushrooms: Ancient Remedies Meet Modern Science | PMC
Immunomodulatory Activity of the Water Extract from Medicinal Mushroom Inonotus obliquus | PMC
Psilocybin Rewires the Brain for People with Depression | UC San Francisco
Psilocybin and Mental Health: The Magic in the Mushrooms | ASM
Psychedelic experiences and long-term spiritual growth: a systematic review | Current Psychology
Turkey tail mushrooms act as nonspecific immune modulators | UCLA Health