Originally founded in 1982 as a psychedelic space pop band by Gary Masters (
Gary Moonboot, guitar), Kim Russell (
Kim Oz, vocals) ,guitarist
Craig Twining,
Wayne Twining (bass) and
Jim Lacey (drums) completed the band.
Later they formed their own label Fungus Records and started working together with the Magick Eye Records as well. Kim Russell became Kim Masters.
Soon after
Marc Hunt (AKA
Swordfish) replaced drummer Jim Lacey in 1989, they began to explore the Ambient-Dub (and eventually Goa/Trance/House) territory with their side-project
Astralasia. While the members still considered themselves mainly as being the Magic Mushroom Band, Astralasia was a huge success from the start, and they soon spent more time on the side project than on the original formation.
After the founding members Gary Moonboot and Kim Oz left, the band has been on hold since 1995. The side-project Astralasia is still alive and active.