Mushroom-forming fungi are important for food production and the degradation of plant litter for the production of chemicals. However, the regulation of these processed is poorly characterized, which limits our ability to use these fungi voor industrial production. During this PhD project, the genetic regulation of mushroom development and plant litter degradation was studied in the model mushroom Schizophyllum commune by a combination of bioinformatics and genetic modification. Current techniques for genetic modification of fungi are inefficient and therefore new molecular tools were developed for gene deletion, gene integration and DNA-protein interactions. These techniques were then applied to understand the structure of chromatin and the role of transcription factors related to wood degradation and mushroom developlment. The research described in this thesis can be used to better study mushroom-forming fungi and to improve the cultivation of these organisms.