Five species of epiphytes were found associated with the basidiocarps of the wood-rotting fungus, T. versicolor. Four algae were identified, Hormidium sp., Stichococcus bacillaris, Chlorococcum sp., and Trebouxia sp., as well as one species of bacteria, Azotobacter chroococcum. Azotobacter is a nitrogen-fixing bacterium often associated with lichens, and may be a significant source of nitrogen for T. versicolor. Trebouxia, a genus of lichenized algae that is rarely found free living, is the most common epiphyte. Ultrastructural investigation of the generative hyphae of the upper surface of the basidiocarp reveals the presence of concentric bodies, which are cellular organelles primarily found in lichens. The common occurrence of Trebouxia and Azotobacter as epiphytes, and the occurrence of concentric bodies, suggest that the basidiocarps of T. versicolor have the potential to be lichenized.