Fungi as sustainable and healthy building materials is gaining traction worldwide. Mycelium, the root network of fungi, can be generated at a lower cost and requires less energy to produce compared to traditional building materials. This non-toxic material is already being used for flooring tiles, soundproof wall panels and mycelium bricks for construction. One of the many appealing aspects of mycelium as a construction material is its ability to biodegrade when the building has reached its lifespan. This prevents large amounts of demolition materials from filling up landfills. When human designs are inspired by nature’s elements and systems it’s called biomimicry. In this case, mycelium has sparked inspiration in the design of urban development and offers a possible solution to reducing the environmental impact of construction and demolition.