Storefront mushroom dispensaries operate openly (e.g., in Vancouver and Toronto), despite being illegal.
Magic mushrooms (psilocybin mushrooms) occupy a complex legal position across Canada. National drug laws broadly prohibit psilocybin, the psychoactive compound in these mushrooms. This makes activities like possession, cultivation, and sale illegal.
However, recent years have seen a shift in policies and enforcement. There has been a patchwork of local decriminalization measures. This has involved medical exemptions and varying degrees of law enforcement tolerance. Below is a detailed overview of how various regions in Canada address the use of psilocybin mushrooms. There is a focus on microdosing (possession of small amounts), cultivation, and distribution or sale of cannabis. I also get into a hands-on examination of how these laws are applied in practice.
Canada
Psilocybin and psilocin (the active chemicals in magic mushrooms) in Canada are classified as controlled substances under the Controlled Drugs and Substances Act, AKA the CDSA. National law prohibits possession of magic mushrooms in any amount. There is no distinction between “microdoses” vs. larger quantities. As Health Canada clearly states: “Under the CDSA, activities with magic mushrooms, psilocybin and psilocin, such as sale, possession, and production, are illegal unless authorized by Health Canada.”
Doing research on the legal research platform Caseway shows that Psilocybin is listed in Schedule III of the CDSA, This means that unauthorized possession can lead to criminal charges. There are also potential penalties of up to three years’ imprisonment if prosecuted as an indictable offence. There can also be fines and shorter jail terms on summary conviction. In practice, a person caught with a small personal amount might face confiscation or minor charges. But microdosing remains formally illegal even at the lowest quantities.
Despite the law, there is growing public interest in microdosing and therapeutic use. Health Canada has acknowledged an “increasing interest in the potential therapeutic uses” of psilocybin. Since 2020, the federal government has allowed case-by-case exemptions for medical purposes. Many police departments have also stated that they don’t plan to raid mushroom operations or make arrests.
Terminally ill patients and those with severe conditions have obtained Section 56 exemptions or access through Health Canada’s Special Access Program to use psilocybin for therapy.
These exemptions, granted to a limited number of patients and therapists, effectively immunize them from prosecution. However, outside of such special permissions or clinical trials, any personal possession is unlawful, even for a single microdose. There is no formal “decriminalization” at the federal level; it only exists at the municipal level. So someone carrying a capsule of psilocybin or a small mushroom for microdosing is technically breaking the law. However, this is very unlikely to be enforced.
Enforcement trends: In practice, enforcement for mere possession (especially small amounts for personal use) is relatively low on the priority list for Canadian law enforcement, particularly in some urban areas. The country’s focus has been more on opioids and other harmful drugs amid the overdose crisis. The province of British Columbia launched a pilot decriminalization in 2023 for small amounts of certain medications, but psilocybin was excluded from that scheme.
This means that even in B.C., magic mushroom possession remains technically criminal. Still, police resources are often directed elsewhere. For instance, Toronto police in 2023 indicated that they investigate illegal mushroom shops when complaints arise. But their drug enforcement was “largely focused on…drugs that are resulting in overdose deaths,” such as fentanyl. This suggests an unofficial deprioritization of psychedelic possession cases in favour of more urgent public health threats.
Cultivation (Growing Mushrooms)
Under Canadian law, cultivating or producing psilocybin mushrooms is treated as “production” of a controlled substance. The law does not distinguish between growing a few mushrooms at home for personal use and manufacturing for sale. Any cultivation without Health Canada authorization is prohibited. Penalties for production could in theory, be severe. Potentially including up to 10 years’ imprisonment if prosecuted as an indictable offence for a Schedule III substance. In practice, a small, home-grown operation for personal use, if discovered, could result in charges for production or possession.
There is a legal grey area regarding mushroom spores and grow kits. Psilocybin and psilocin themselves are illegal, but mushroom spores do not contain psilocybin. Thus, spores and kits can be sold openly, as they technically do not contain controlled substances.
Mushroom spore kits are openly sold in Canada, often marketed for microscopy or novelty purposes. Possessing spores or growing materials is not in itself a crime since the chemicals are absent. However, once those spores are cultivated and mushrooms containing psilocybin form, the law is broken. This creates a grey market in which enthusiasts can legally buy spores or kits. Yet the moment they successfully grow mushrooms, they’ve produced an illegal drug.
Law enforcement has not aggressively targeted the sale of spores. The activity is unenforced mainly in much of Canada. But anyone caught actively cultivating mushrooms (e.g. with fruiting mushrooms, not just spores) could face criminal charges. While obtaining the means to grow is relatively easy, actually growing remains a legally risky endeavour.
Distribution and Sale
Selling or distributing magic mushrooms is a serious crime in Canada. It is considered “trafficking” in a controlled substance. Without a license (which is currently held by only a handful of research or clinical trial entities), sale and supply are illegal. Despite this, a thriving grey market for psilocybin has emerged. This is reminiscent of Canada’s pre-legalization cannabis dispensary era.
Both brick-and-mortar shops and online mail-order websites have emerged in cities such as Vancouver, Toronto, Montreal, Ottawa, and others. These shops openly sell dried mushrooms, microdose capsules, edibles, and other psilocybin products. They are operating in open defiance of the law. Some stores in Vancouver also sell different products, like LSD.
Over the past few years, this grey market has grown considerably. A 2025 research study identified 57 psilocybin dispensaries operating across Canada, in 15 major cities, as of May 2024. These range from wellness-themed “microdosing” clinics to more obvious storefronts with names like “FunGuyz” or “Shroomyz.” They exist in a legal vacuum, as there is no law permitting these outlets. But they have been proliferating due to uneven enforcement. This situation is analogous to the mid-2010s cannabis scene in Canada, when illegal dispensaries operated relatively openly while awaiting legal reforms.
Enforcement and regional variation
Responses to these mushroom dispensaries have varied by city and province. In Vancouver, which has a long history of tolerance for cannabis dispensaries, local authorities have largely turned a blind eye to mushroom retailers. Police raids are rare, and advocates note that Vancouver’s lenient climate for cannabis in the 1990s and 2000s has “extended to psychedelic stores, like [Dana] Larsen’s Medicinal Mushroom Dispensary (opened 2019).”
Larsen’s shop, for example, has openly sold dried mushrooms and microdose products to members for years. He reports that the threat of police raids is low. He expected that even if raided, he’d likely not face serious jail time. They might just take his crops and leave him alone. The publicity of being raided might even help his cause. Vancouver’s city council even considered a motion in 2019 to crack down on mushroom sales, but the motion was defeated. This signalled tacit approval of the status quo. This permissive approach has made Vancouver a hotspot for the “shroom boom,” with colourful mushroom shops now part of the city landscape.
But authorities in Ontario and Quebec have recently adopted a stricter stance. In late 2022 and 2023, police conducted raids on several mushroom storefronts…
Toronto
Initially, several shops opened and remained operational through 2022–2023, with the Toronto police essentially taking a hands-off approach due to other priorities. By mid-2023, there were numerous bright, signed mushroom stores in Toronto. A city councillor noted the city had “no tools” to shut them down because it’s a federal crime, not a business license issue. Toronto police stated they would investigate dispensaries if complaints are made. But they confirmed their focus was on fentanyl trafficking over psychedelics. Only one notable raid occurred in Toronto (in November 2022, resulting in two arrests). For much of 2023, many stores remained open despite being illegal.
Hamilton
In July 2023, police in Hamilton (near Toronto) raided two mushroom shops, seizing over $70,000 in products and arresting two people.
Montreal
In July 2023, Montreal police swiftly shut down an illegal dispensary just days after it opened, arresting four individuals for trafficking.
Other Ontario cities:
A chain called FunGuyz, which operated over 20 mushroom dispensaries across Ontario, as well as some in other provinces, faced coordinated police action. In late 2023, reports indicate police executed dozens of search warrants, seizing hundreds of kilograms of mushrooms and related substances. FunGuyz subsequently announced it would close its shops after these raids.
This patchwork enforcement creates a “whack-a-mole” scenario. In some jurisdictions, particularly in B.C., open mushroom sales are often unenforced or tolerated. This has allowed the retail market to flourish. In other cities, police and city officials have begun cracking down, especially as the market gains visibility.
These magic mushroom dispensaries often mimic the strategy of early cannabis dispensaries. They operate openly to pressure lawmakers into making changes. So far, however, the federal government maintains that non-medical psilocybin sales are unlawful. Health Canada has issued warnings that these storefronts are operating illegally and without proper safety regulations in place.
Emerging Policy Shifts and Real-World Developments
Canada’s magic mushroom landscape is evolving. Though recreational use remains illegal, there are significant developments on the medical and legal front.
Starting in 2020, some patients with end-of-life distress and other serious illnesses received Health Canada exemptions to use psilocybin therapeutically. In January 2022, regulators amended the rules to allow physicians to request psilocybin through the Special Access Program for patients with severe conditions.
This marked an easing of access to psychedelic therapy (though not a full legalization). As of 2023, dozens of patients and some therapists have been granted these exemptions. No psilocybin-based drug is currently approved in Canada, but clinical trials are ongoing, and Health Canada asserts that these trials and compassionate access routes are the proper channels for now.
A Canadian nonprofit, TheraPsil, along with patients, launched a court challenge in 2022, arguing that the absolute prohibition on psilocybin for seriously ill patients violates Section 7 of the Charter of Rights, which guarantees the right to life, liberty, and security of the person.
This mirrors the legal strategy that forced Canada to allow medical cannabis two decades ago (the 2000 Parker case). The outcome of this case could potentially compel the government to create a legal access regime for psilocybin therapy if the courts find in favour of patients’ rights.
Provincial Initiatives
Alberta became the first province in 2022 to announce a regulatory framework for psychedelic-assisted therapy. Alberta’s rules (which became effective in January 2023) allow authorized use of psilocybin and other psychedelics in medical contexts under tight controls.
For example, only psychiatrists can administer psychedelics to patients, and a provincial license is required for any treatment use. While this doesn’t legalize mushrooms broadly, it establishes a framework that allows for oversight if federal law permits therapeutic use through exemptions or future approvals. Other provinces are observing this approach, but Alberta’s move is notable as a proactive step toward medical integration.
Public Attitudes and Grey Market Growth
As noted, Canadian cities are seeing a “shroom boom”, with dozens of grey-market dispensaries and even psychedelic “clinics” operating openly. This growth is testing the limits of the law.
Some local governments have debated responses, for instance, as seen in Vancouver’s 2019 council debate, mentioned earlier. And in Ontario, some municipalities have sought clarification. So far, however, no province or city has formally decriminalized mushrooms by law. It’s all happening via unofficial tolerance or police discretion. Entrepreneurs in the space continue to push boundaries. They are betting that Canada may eventually regulate psilocybin similar to cannabis.
Canada’s laws nationally ban psilocybin mushrooms for any non-authorized use, making microdosing, home growing, and selling illegal, but enforcement is inconsistent.
Microdoses in one’s pocket are illegal but might be ignored by police; online spore kits are sold legally, but using them to grow is unlawful; and unlicensed shops operate openly in some cities despite periodic raids in others. The trajectory in Canada suggests a growing acceptance of medical use (under exemptions) and increasing public pressure to revisit the legal status in the coming years, despite the current law remaining prohibitive.
To summarize what is going on in Canada… Storefront mushroom dispensaries operate openly (e.g., in Vancouver and Toronto), despite being illegal. Enforcement is inconsistent, with Vancouver largely tolerating them, while other cities occasionally raid them. Patients have taken the government to court to assert their rights to medical access. Complex times!
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