Luminescent Panellus Panellus stipticus (Fr. Panelle astringente) is a small creamy brown mushroom that grows in groups on the wood of dead deciduous trees, typically on beech, oak and birch, but also sometimes on alder, hazel, chestnut and ash. The individual fruiting bodies are no more than 4 cm across, fan shaped on short horizontal stems, and quite leathery. The cap surface is dry and the mushrooms do not have a distinctive odour. The spores are white (useful for distinguishing them from similar looking Crepitodus spp, whose spores are brown).
It's considered toxic if you ingest it, and very bitter, leading to its alternative English name of Bitter Oysterling. The level of toxicity is not life threatening and it is safe to try some on your tongue if you are a healthy adult, but the impressive bitterness will take some time to develop. If you chew it as well it is astringent, so the whole experience is quite unpleasant. Make sure not to swallow, but spit it out.
The 'approved' English name suggests that they are bioluminescent. Sadly this seems to be a trait of part of the North American population of this species, but the European ones are not bioluminescent.
It is believed to have been used in the past to staunch bleeding wounds due to its astringency, and as a purgative.
As an agent of decomposition Luminescent Panellus is a key contributor to the health of the forest and contributes to the creation of habitat for numerous small creatures. It also permits the recycling of nutrients in the forest floor, and may have potential for removing organic industrial pollutants from waste water in the environment from olive processing. In the forest the fungus breaks down both lignin and cellulose and causes white rot. It tends to appear in younger regenerating parcels of forest rather than mature parcels. Deer and slugs will eat them.
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