According to the Children’s University of Manchester — a division of The University of Manchester in the United Kingdom — mushrooms reproduce through the distribution of spores. The reproductive part of the mushroom releases spores that are carried by the wind, land in an ideal environment and produce mycelium underground, which eventually grows into a tall mushroom.
The entire lifecycle of this fungi is referred to as sporulation. The spores are contained in a thick hard shell until they are ready to be dispersed. The end of the shell comes off and the spores are released; everything needed for the mushroom to reproduce is contained inside the spores.