Decomposition of plant matter is a key ecosystem process and considerable research has examined plant litter decay processes in freshwater habitats. Fungi are common inhabitants of the decomposer microbial community and representatives of all major fungal phyla have been identified within freshwater systems. Development and application of quantitative methods over the last several decades have firmly established that fungi are central players in the decomposition of plant litter in freshwaters and are important mediators of energy and nutrient transfer to higher trophic levels. Despite the critical roles that fungi play in carbon and nutrient cycling in freshwater ecosystems, there are notable differences in the types and adaptations of fungal communities between lotic and lentic habitats. These differences can be explained by the wide range of hydrologic, physical, chemical and biological conditions within freshwater systems, all of which can influence the presence, type, and activity of fungal decomposers and their impact on litter decomposition. This following seeks to provide a brief overview of the types, adaptations, and role of fungi within lotic and lentic freshwater ecosystems, with a particular emphasis on their importance to litter decomposition and the key environmental conditions that impact their growth and decay activities. This discussion will specifically focus on fungal dynamics occurring on plant litter in forested headwater streams and emergent freshwater marshes, since published data concerning their role in these systems is considerably more abundant in comparison to other freshwater habitats. watershed (headwaters), where water begins its journey down slope in response to gravity. These headwater streams eventually connect with other streams that flow into catchment basins forming lentic freshwater ecosystems, such as ponds, lakes, and inland wetlands, or eventually coalesce further to form larger rivers that flow into coastal regions forming lakes (e.g., oxbows), floodplain habitats, and tidal marshes as freshwater transitions into the marine environment. Along this freshwater continuum, there are marked changes in hydrologic, physical, chemical, and biologic conditions, all of which forms a habitat templet (e.g., Townsend and Hildrew, 1994) that influences the presence, types, adaptations, and decay activities of fungal decomposers. Despite the critical roles that fungi play in carbon and nutrient cycling, there are notable differences in fungal communities between lotic and lentic freshwater habitats, which can be explained by the spatial and temporal heterogeneity in environmental conditions encountered within these systems. In streams and rivers, aquatic hyphomycetes are among the most wellrecognized and extensively studied fungal group. These fungi comprise an ecological assemblage of ~300-320 species (Shearer et al., 2007; Duarte et al., 2013b) that typically dominate the fungal communities associated with decaying plant litter (Nikolcheva et al., 2005; Seena et al., 2008; Duarte et ...