Over 500 species of fungi have been recorded on Lundy from seaweed on the coast to dung on the plateau. Fungi on Lundy can be found everywhere; however they are normally noticed by the presence of their fruiting bodies, more commonly known as mushrooms or toadstools. These can be seen all year round, depending on the species, some form fairy rings whilst others do not resemble your normal idea of a mushroom in the form of spindles such as in the Golden Fairy Spindles, Clavaria fusiformis.

The Site of Special Scientific Interest protects the fungi of Lundy, particularly the 23 species of waxcap, Hygrocybe spp.  which are of particular importance.  Waxcaps, and other fungi, are declining across the UK due the improvement of grassland for farming. The most colourful are the Crimson Waxcap, Hygrocybe pucinea, which can be found across the airstrip and the Scarlet Waxcap, Hygrocybe coccinae.