Mycelium-based composite (MBC) is being developed and researched in multiple commercial markets as an alternative sustainable material. MBC utilizes the mycelium ability to create a web-like structure in lignocellulosic structures. However, producing the material in a natural environment and subjecting it to various tests; the study aims to examine the distress of the southern Swedish climate on MBC grown in different substrates. The selection of substrates are based on their compatibility to fungal growth, the substrates are also locally sourced and grown. This is to explore MBC material production with a focus on circular economy as biodegradable material in architecture could help develop a reuse and recycle system. Various tests were done on the different substrate MBC to determine its characteristics, limitations and opportunities. The tests were developed with a focus on architectural construction and the southern Swedish climate; meaning experiments including MBC reaction to fire, water and temperatures. The results are based on the different MBC materials reaction, this ends with a description on how the materials could be used and developed in the future.