Glowing Mushroom

Glowing Mushrooms can be found on blue grass, in deeper parts of the Underground. They emit their own light, making them quite easy to find. If there is room, large tree-like glowing mushrooms called Mushroom Trees will spawn amongst the small ones. These can be harvested with an axe to yield many Glowing Mushrooms.

Harvesting Glowing Mushrooms can sometimes yield Mushroom Grass Seeds, which can be planted in mud below sea level to create a new Glowing Mushroom farm. Sometimes it can be generated in underwater. The mushrooms themselves heal 50 points of damage on consumption. They are used in making Healing Potion and Mana Potion.

Like most growing things in Terraria, Glowing Mushrooms start off as half-grown, looking almost cocoon-like. Cutting these not-fully-ripe Mushrooms in version 1.0.5 will no longer yield a Glowing Mushroom 100% of the time like it did in previous versions. Couple this fact with the slower rate of grass growth in 1.0.5 and it becomes clear that Glowing Mushroom farms are going to have a lower yield then they did previously, and must be tended more carefully in order to reap the maximum benefit.