Saprotrophic
Saprotrophic mushrooms feed on dead tissue by releasing enzymes to break it down into manageable, absorbable molecules. These mushrooms are vital to ecosystems because they accelerate the decay of dead matter and recycle it into a fungus that can be eaten by other living creatures. Examples of this sort of mushroom include the highly sought-after shiitake mushroom, the reishi used in Chinese medicine and the oyster.
Mycorrhizal
Mycorrhizae mushrooms form symbiotic relationships with plants and are often seen growing on the sides of tree roots. These mushrooms are further divided into two subspecies: endomycorrhizal -- which connect with the root cells of a plant -- and ectomycorrhizal, which wrap themselves around the root itself. In exchange for the glucose they receive from the host plant, these fungi provide phosphorus and additional moisture to the plant, making this relationship mutually beneficial. An example of a mycorrhizae mushroom is the Italian porcini mushroom, often used in soups and gourmet truffles.
Parasitic
These mushrooms grow on the sides of trees and feed off the nutrients of their host. This relationship, however, is far from symbiotic, as parasitic mushrooms give nothing back to the host tree and will eventually kill it. True parasitic mushrooms die along with the tree after propagating their species by releasing spores; however, some species cross the line between parasitic and saprotrophic mushrooms by continuing to live on the host after it has expired. Examples of these mushrooms include the honey fungus and the caterpillar fungus.
Endophytic
Endophytes can be seen growing on the sides of trees in plants like parasitic mushrooms, but these fungi appear to have a beneficial effect on their hosts. Some benefits include a resistance to pathogens for both the host and the fungus and a transfer of nutrients. Studies are still being conducted on these mysterious fungi, and some scientists believe certain types of parasitic and saprotrophic mushrooms will need to be reclassified to endophytes as understanding of species increases.