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I have mushrooms in spots in town. A few near the log bench by my waterfall, although I'm not crazy about it, so might take them up. The other is around the stone tablet. I also planted a few flowers and put down some lucky clovers.
I think the trick is to use them sparingly. Tuck them in shady areas to make it more natural-looking (unless you're doing fairy rings).
I'd play around with it and live with it for a couple of days. Something you weren't sure about might look better at different times of day.
I made a mushroom patch in front of my train station.I put a path border around it and planted a few trees around it.Pretty simple but it looks alright.
I personally place my mushrooms next to random trees throughout town in a way where they are highlighted when people are walking on paths/certain areas or used as hidden/non-hidden filler (usually to help with my dynamic flower placement).
I decorate with mushrooms using them in paths, in front of trees, in fairy circles and in front of villagers houses. I think they add wonderful charm to towns.
i like to line some of my paths with mushrooms. i also have a bunch all around june's house. if you have a villager whose house has a bit of empty space around it mushrooms are a good thing to fill it with, i think