Dry rot is a type of wood decay caused by certain fungi, primarily the species Serpula lacrymans. It thrives in damp, poorly ventilated areas, where it breaks down the cellulose in wood, leading to structural damage. Unlike wet rot, dry rot can spread through dry wood, making it particularly insidious. The signs of dry rot include a musty odor, cracks in the wood, and a powdery residue. To prevent dry rot, it is essential to maintain proper ventilation and control moisture levels in buildings. Regular inspections can help identify and address potential issues before they worsen.