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Mycelium is required to upgrade your Flame Altar from level three to four inEnshrouded.The upgraded Flame Altar provides you with universal benefits for your attribute points, increases the different levels of Enshrouded zones you can enter, as well as boosts to your time in the Shroud and how many Flame Altars you can have.
As well as Mycelium, you will also need Goo, Sparks, Indigo Plants, Amber, Copper Ore, and the Fell Wispywyvern Head, which are located throughout Revelwood and in the Pike Capital.

Enshrouded is currently in early access and that means some of the information in this guide might be subject to changes.
Where To Find Mycelium
Mycelium is found within Enshrouded zones. Head over to any of the glowing rocks and mushrooms (like the ones shown at the top of this page) and you’ll be able to use your pickaxe to mine the Mycelium.
Mycelium can be harvested with the most basicScrap Pickaxe, andyou’ll need15 in totalto upgrade your Flame Altar when the time comes.
Mycelium is located in every Enshrouded zone and around Elixir Wells. There’s an Enshrouded location directly close to spawn underneathBraelyn Bridge- you will be sent here to complete early quests,so grab some Mycelium while you’re at it.
You can extend your time in the Enshrouded areas of the map with Enshrouded Survival Flasks which can be crafted at the Alchemist. These can also be found in chests and destructible objects.
However, if you opt to farm for Mycelium aroundBraelyn Bridgethere are plenty of spots where you’re able to exit the Enshrouded and reset your timer.
Goo, Sparks, Indigo Plants, Amber, Copper Ore, and the Fell Wispywyvern Head are the other items you’ll need to expand your Flame Altar.