A pure culture ofPanellus stypticus was isolated from a mature basidiocarp and studied for its growth and luminescence abilities under various environmental and nutritional conditions. The culture was non-luminous growing submerged in defined liquid media with or without agitation. After a two-to three-day lag period on solid substrata, luminescence increased exponentially with a doubling time of 4 hours while the increase in colony radial growth was linear. On solid substrata, growth and total light emission were strongly correlated under most conditions studied. Optimal conditions included darkness; 28 C; pH 3.8; glucose, maltose, trehalose, cellobiose or pectin as carbon source; and ammonia or asparagine as nitrogen source. Growth and luminescence were inhibited by ambient fluorescent light. Dark-grown colonies were brightest in the center while light-grown colonies were brightest at the pe? riphery. Cultures hydrolyzed starch and produced an extracellular phenoloxidase. Conditions for pro? duction of luminescent basidiocarps by this culture are described.Key Words: Panellus stypticus, luminescence, bioluminescence, defined media Understanding the physiology of luminescent fungi and its relationship to light emission is im? portant for several reasons. First, luminescence is rapidly and sensitively measurable in vivo and thus constitutes a endogenous reporter system that may help to reveal physiological interrelationships with environmental parameters. Sec? ond, expression of luminescence may be spatially resolved within a colony or basidiocarp and thus used as a marker for gene expression and differentiation. Finally, optimization of light emission by fungal cultures in the laboratory may aid in studies of its biochemistry.Several quantitative studies of the physiology of fungal luminescence (e.g., Hastings, 1952; Foerster, 1960,1965;Berliner, 1961aBerliner, , b, 1963Berliner and Brand, 1962;Foerster et al, 1965;Calleja and Reynolds, 1970a; Kamzolkena, 1982) and its biochemistry (Airth and McElroy, 1959; Foerster, 1962,1964;Airth et al., 1966;Kuwabara and Wassink, 1966;Endo et al, 1970, Kamzolkena et al, 1983Isobe et al, 1987Isobe et al, ,1988Nakamura et al, 1988;Shimomura, 1989) have been reported. However, the luminous fungus for which physiology in relationship to its light emission is best understood has been reported as Col? lybia velutipes (Curt. ex Fr.) Kummer (= Flammulina velutipes (Curt. ex Fr.) Sing.) (Airth and McElroy 1959;Foerster, 1962, 1965;Foerster et al, 1965;Airth et al, 1966), although it is of dubious identity (Wassink, 1978). When strains of Flammulina velutipes obtained from the Culture Collection at the Center for Forest Mycology Research, University of WisconsinMadison (OKM 6261-sp) and by tissue culture were studied, neither basidiocarps nor mycelia