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If you’ve been spending time scavenging through the wild zones of ARC Raiders, you’ve probably noticed that some materials are everywhere, while others feel like they barely exist. Mushrooms fall into that second category. They’re a rare find, and you’ll need them if you want to upgrade Scrappy to Level 5, one of the best long-term upgrades in the game.Once Scrappy is maxed out, he’ll start bringing you large batches of crafting materials automatically, saving you a ton of grinding time later on. So, if you’re serious about resource farming, learning exactly where to find Mushrooms and how to collect them safely is worth it.Let’s break it down step-by-step.Everything you need to know about Mushrooms in Arc RaidersMushrooms do have guaranteed spawn points. They’re in places that are either crowded or easy to miss if you don’t know where to look.Location to find mushrooms in Arc Raiders (Image via Embark Studios)There are two main areas where you can reliably find them:Hydroponic Dome Complex (Dam Battlegrounds) - This is the best spot overall. The Dome sits south of Victory Ridge, and you’ll find small water pools inside. Check around those; you can often pick up one or two Mushrooms growing right at the edges. Once you step outside the Dome, go just south toward the waterline. There’s usually a fallen tree nearby, and that’s another common spot where Mushrooms grow. They cling to the trunk or the roots, so look closely before you move on. There’s also a tree trunk on the western side of the Dome area that sometimes spawns an extra cluster. It’s not a guaranteed spawn every time, but it’s worth checking as part of your loop.Swamp Region (Western Dam Battlegrounds) - If you move west from the Dome, you’ll reach the Swamp, a dense, humid area filled with trees and wreckage. This is another solid place to farm Mushrooms. They can be found attached to trees or growing on logs, especially around the forested Wreckage area in the center.Mushrooms in both zones give off a faint glow, so they’re much easier to spot at dusk or night. If you’re struggling to see them in daylight, try running your route later in the in-game day.Read more: How to complete ARC Raiders What Goes Around questThese spots are popular. A lot of players run these routes, which means if you arrive late, you might find empty trees. Here’s how to make your life easier:Use your Scanner Pulse. It highlights gatherable resources like Mushrooms for a few seconds, making them pop out even in dense areas.Store them in your Safe Pocket immediately. You can keep up to 10 Mushrooms there, which means you won’t lose them even if you get taken down before extraction.Avoid unnecessary fights. Both the Hydroponic Dome and Swamp regions can have Raider patrols or machine enemies. Stick to cover and move quickly so you can grab what you need and get out.If you don’t find any at first, don’t stress it. Mushroom spawns reset after a bit, so you can circle back or switch instances to get a fresh batch.You can use mushrooms to train scrappy in Arc Raiders (Image via Embark Studios)Here’s the main reason you’re collecting them: the Scrappy Level 5 (Master Hoarder) upgrade. This is the final upgrade for Scrappy, and it massively improves how many crafting resources he delivers to your Workshop over time. Once you’ve got it unlocked, you’ll spend a lot less time manually farming materials.This upgrade also requires Apricots, so ensure you’re picking those up whenever you see them.Now, technically, Mushrooms can be consumed or sold, but neither is really ideal unless you’ve already finished Scrappy’s upgrades:Eating them restores about 15 Health, which is helpful early on but not worth wasting them.Selling them nets you 1000 coins each, which is solid, but their value for Scrappy is still higher.So yeah, resist the temptation to eat or sell them right away. Keep them stored until you’ve unlocked that final Scrappy upgrade.Mushrooms might not look like much, but they’re one of those items that end up saving you hours of grinding once Scrappy’s fully upgraded. Stick to the Hydroponic Dome and Swamp routes, use your Scanner to make spotting them easier, and always stash them safely as you go.Also read: All keys in ARC Raiders Dam Battlegrounds and what they unlockFor more articles on Arc Raiders, follow Sportskeeda:How to upgrade all Workshop Stations in Arc RaidersARC Raiders "Online connection error": Possible fixes and reasonsARC Raiders not working on Xbox: Possible reasons and fixes