The mycelium is an organised cellular network that develops according to a functionally coherent plan. As it expands, the mycelium is capable of modulating the relative abundance of different cell types to suit the prevailing environmental conditions. This versatile pattern of multicellular development involves sophisticated environmental sensing and intercellular communication systems that have barely been recognised. This review describes an insight into our current understanding of the signalling molecules and mechanisms that take part in the ordered and timely emergence of various cell types and their biological significance. The prospects that this emerging knowledge may offer for the sustainable control of fungal colonisation or dispersal will also be considered.