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Mushroom "seeds" are actually called spores. They are microscopic reproductive structures that fungi release, similar to how plants release seeds. These spores, when provided with the right conditions (moisture, temperature, and substrate), will germinate and grow into mycelium, the root-like structure of the fungus, which eventually produces the mushroom. Mushroom spawn, a grain or other medium colonized by mycelium, is also used as a way to propagate mushrooms.