Scientists discovered that distantly related hallucinogenic mushrooms produce psilocybin, the psychoactive compound in magic mushrooms, through a shared set of genes that were likely transferred between species living in similar environments like dung and decaying wood. By sequencing the genomes of three different hallucinogenic mushroom species, researchers found nearly identical gene clusters responsible for making psilocybin, and evidence showing these genes jumped between unrelated fungal lineages. This discovery suggests that fungi in dung and wood environments may be rich sources of other bioactive compounds with potential medical applications.