Dried White Fungus is a type of fungus also belonging to the mushroom family. It has been prized for its medicinal benefits, namely anti-inflammatory and anti-tumor. In Chinese, it is commonly used in soups cooked for soothing purposes like nourishing the bodies, healing dry coughs and clearing heat in the lungs. White fungus with rock sugar in a sweet soup or with chicken in a savory version are among the popular ones. Occasionally, you may also see it in stir-fries, vegetarian style in particular.