Fungi play a crucial role in nutrient cycling in forests by breaking down organic matter such as fallen leaves, dead plants, and wood. This decomposition process releases nutrients like carbon, nitrogen, and phosphorus back into the soil, making them available for the growth of new plants and trees. Additionally, fungi form symbiotic relationships with trees through mycorrhizal associations, where they help plants absorb essential nutrients from the soil in exchange for sugars produced by the plants through photosynthesis. Overall, fungi are essential for maintaining healthy forest ecosystems and promoting the recycling of nutrients.