How do fungi decompose organic matter?

Fungi decompose organic matter by secreting enzymes that break down complex compounds like cellulose and lignin into simpler molecules. These nutrients are then absorbed through their hyphae, the thread-like structures that form the fungal body. By decomposing plant and animal remains, fungi recycle nutrients into the soil, supporting ecosystem health. Fungi like mushrooms, moulds, and lichens are essential in breaking down dead material and maintaining ecological balance.