Macrofungi producing fruiting bodies in the field and microfungal isolates were studied in a Cu and Zn polluted area around a smelter at Gusum, in southeastern Sweden. The number of macrofungal species decreased from about 35 in non-contaminated soil to less than 15 near the mill. Few species appeared tolerant to the pollution - only Laccaria laccata was found more frequently in areas with high metal content than in control areas. The number of microfungal species isolated was little affected by the pollution. The species composition was, however, drastically altered.