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an adult mushroom has spores in its gills that become airborne due to wind and animals and then land in the soil.  If conditions are right, the spores may germinate and form threadlike strands of cells underground.  Eventually they form a whole mat of these cells and if two of these mats unite, a mushroom may form and poke up through the soil. The mushroom will continue to grow until it is an adult and its gills produce spores.  Then the cycle starts all over again.