This review examines how psilocybin, the active compound in magic mushrooms, may help treat difficult-to-treat conditions like smoking addiction, alcohol dependence, and depression. Clinical trials show psilocybin-assisted therapy achieves better smoking cessation rates (80%) than standard medications and reduces depression symptoms as effectively as common antidepressants. The treatment works differently than daily medications, requiring only a few supervised doses weeks apart, potentially offering a new option for millions of people.