Players returning to Palworld for its 1.0 release may be seeking the Mysterious Mushroom, an item introduced with the mid-2024 Sakurajima update. This elusive ingredient can be found on Sakurajima Island, the new area added in the update.
The Mysterious Mushroom is primarily gathered by harvesting large blue mushrooms that grow in the environment, particularly near bodies of water. Alternatively, players can acquire them by defeating Shroomer and Shroomer Noct Pals, as these creatures have a chance to drop the item upon death.
This ingredient is essential for crafting the Shroomer Noct saddle, which allows players to use their Shroomer Noct Pal as a mount and unlock its partner skill, Swooshy Spores. The crafting recipe for the Shroomer Noct saddle requires 20 Leather, 20 Mysterious Mushrooms, 30 Fibre, 10 Refined Ingots, and 30 Paldium Fragments. While the Mysterious Mushroom can also be used to craft Mysterious Mushroom Juice, its main utility in the current game build appears to be tied to this saddle.
For those encountering difficulties locating the Mysterious Mushroom, it is recommended to consult guides on how to initiate the Sakurajima DLC content, as access to the island is a prerequisite for finding this new item.