Panellus stipticus is a type of bioluminescent fungus found primarily on decaying wood. It belongs to the family Mycenaceae and is known for its ability to emit a greenish light in dark environments, which is a result of a chemical reaction involving luciferin and luciferase. This fungus typically grows in clusters and has a thin, fan-shaped cap that can reach up to 5 cm in diameter. Panellus stipticus is often found in temperate forests and plays a role in the decomposition process by breaking down organic matter, contributing to nutrient cycling in the ecosystem.