Honey fungus mushrooms. Two honey fungus or bootlace mushrooms (Armillaria mellea) among moss and grass. This fungus is found on or around the trunks of coniferous and deciduous trees. The fungus is often found on dead trees. It is a prominent wood decaying fungus and plays a major role in rotting down dead trees. The fungus spreads by long black bootlace-like strands called rhizomorphs (not seen) which can grow beneath bark, along roots and through the soil. The honey fungus mushrooms grow from summer to early winter and are edible once cooked.