The revival of interest in biotechnology has fueled research in many sectors of environmental biotechnology. The present paper describes research utilizing adsorbents prepared from wood-rotting mushrooms growing wild in tropical forests. Nine species of mushrooms were screened using copper(II) as the model adsorbate. While may species showed excellent potential, comparable to biosorbents reported in literature, Ganodernma lucidum emerged as the best biosorbent. This biosorbent was further developed for use in a packed-bed bioreactor for treatment of rare earth processing effluents. Electron paramagnetic studies confirmed that adsorption is by chemical binding to the biosorbent.