Found these tiny cups filled with little grey ‘eggs’ growing in the mulch. They are smaller than a dime. Anyone know what they are?

As you walk through your garden or yard, you might stumble upon something peculiar among the mulch—tiny cups filled with what appear to be little grey ‘eggs.’ These fascinating formations are not only intriguing but also quite common in certain environments. Smaller than a dime, these structures may seem mysterious at first glance, leading many to wonder what they are and whether they pose any harm.
These miniature ‘nests’ are actually a type of fungus known as Bird’s Nest Fungi. Despite their unusual appearance, they play a unique and beneficial role in the ecosystem. In this article, we will explore what Bird’s Nest Fungi are, how they live and thrive, and why they appear in places like mulch and damp garden beds.
1. What Those Tiny Cups in Your Mulch Actually Are
The tiny cups you see are indeed fungi, belonging to the family Nidulariaceae. These fungi are aptly named