Panaeolus cyanescens is a coprophilous (dung-inhabiting) species which grows in tropical and neotropical areas in both hemispheres. Laussmann & Sigrid Meier-Giebing (2010) reported the presence of psilocybin at 2.5% and psilocin at 1.194% average from 25 samples seized by German customs that were shipments from commercial growers (making modern commercially cultivated strains of this species the most potent hallucinogenic mushrooms ever described in reputable published research). Other researchers have documented a significant presence of serotonin and urea in this species as well as the presence of baeocystin which may also be psychoactive.