The Mysterious Mushroom is an item that was added with the Sakurajima update in mid-2024, but if you're jumping back into the game after a break to enjoy the 1.0 release, you might be wondering where to find this elusive ingredient.

Pretty unsurprisingly, you can find the Palworld Mysterious Mushroom on Sakurajima Island. This special ingredient can be harvested by cutting down the large blue mushrooms that appear throughout the environment near water. You can also kill Shroomer and Shroomer Noct Pals, as they have a chance of dropping a Mysterious Mushroom on death.

You can find Mysterious Mushrooms in the Sakurajima region.

You can use the Mysterious Mushroom to craft Mysterious Mushroom Juice, but it's mostly sought after to craft the Shroomer Noct saddle.

To make the Shroomer Noct saddle you'll need 20 Leather, 20 Mysterious Mushrooms, 30 Fibre, 10 Refined Ingots, and 30 Paldium Fragments. After crafting it, you'll be able to use your Shroomer Noct as a mount, and unlock their partner skill, Swooshy Spores.

If you're struggling to find it, make sure you've read our guide on how to start the Sakurajima DLC in Palworld.