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Fungi grow dense webs of mycelia that naturally form a 3D matrix, binding together any particles they encounter during growth. This property has been successfully exploited to create 100% bio-based lignocellulosic composites bound with mycelia. In this chapter, we review recent research on production procedures and performance of these composites. We identify various roles of mycelia in the composite performance and mechanisms by which mycelia contribute to composite properties. In addition, we point out critical knowledge gaps and identify commercial challenges facing this technology.