A taxonomic study of the wood-rotting basidiomycetes was conducted at the Molave Forest of San Fernando City, La Union, Northern Luzon, Philippines. This mountainous forest located in the eastern boundaries of the City is being considered as one of the most important forest ecosystems in Ilocos Region, thereby indicating the need for conservation and protection. This paper attempts to document all the macroscopic fungal basidiomycetous species in the area by preparing taxonomic accounts based on an extensive systematic collection and by facilitating the identification or recognition of each fungal species. As there has been no comprehensive work done on the diversity of macroscopic fungi in this area, hence this study was conducted. Using transect line (TL) method, four transect lines were established from the baseline (100m asl) toward the peak (300m asl) with 10m x 25m quadrat sampling each transect line and an interval of 50 meters between quadrats. All in all 20 quadrats were laid out. The fungal species within the quadrats along the TLs were identified and recorded. This study of wood-rotting basidiomycetes in the molave forest of La Union documented fifty one species. Each species is described including substrata/hosts, synonymies, and habitat. Some of these species, being the most destructive fungi are largely responsible for the decay of living trees. We found out that fungal species richness decreased if the condition of the area is relatively dry.