Background: This study documents the use of a wild edible mushroom (WEM) in Tanzania rural areas and assesses its significance as a source of healthy food and income for the disadvantaged rural dwellers. Methodology: The data was gathered through local market surveys in order to conventionally identify different common WEM taxa using a semi-structured interview and it involved 160 people comprised of WEM hunters, traders and consumers. The collected data covered the information on where, how, when and who was the principal transmitter of the mycological knowledge learned and the general information on their market and values. Results: Results show that mushroom gathering is gender oriented, dominated by women (76.25%) whereas men account for 23.75%. Women possess vast knowledge of mushroom folk taxonomy, biology and ecology and are therefore the principal knowledge transmitters. It was also found that learning about WEM began at an early age and is family tradition based. The knowledge is acquired and imparted by practices and is mostly transmitted vertically through family dissemination. The results also revealed that 75 WEM species belong to 14 families sold in fresh or dry form. The common sold species belonged to the family Cantharellaceae (19) followed by Rusullaceae (16) and Lyophyllaceae (13), respectively. Collectors residing near miombo woodland may harvest 20–30 buckets (capacity 20 liters) and the business may earn a person about $400–900 annually. Conclusion: This finding envisages the purposeful strengthening of WEM exploitation, which would contribute significantly in boosting the rural income/economy and reduce conflicts between community and forest conservers. The activity would also provide alternative employment, improve food security to rural disadvantaged groups especially women and old people hence improve their livelihood.The Association of Strengthening Agricultural Research in Eastern and Central Africa (ASARECA) Swedish International Development Cooperation Agency (Sida-SAREC)