Research on psychedelics has generated renewed interest over the past two decades. Recent studies suggest psilocybin, a naturally occurring psychedelic found in over 100 species of mushrooms, may hold significant potential as a therapeutic tool in the treatment of depression, addiction, and end-of-life anxiety. Data indicate psilocybin and other psychedelics can occasion profound and lasting changes in mood, behaviors, and attitudes consistent with enhanced health and well-being in diverse populations. Study volunteers report mystical and spiritual-type drug effects and psychological insight from their psychedelic experiences, which have been linked to persisting benefits. This discussion will focus on contemporary research with psilocybin, and present key findings regarding its possible use as a treatment in mental healthcare.