Ethiopian forests are rich in valuable types of non-wood forest products, including mushrooms. However, despite their nutritional, economic, and ecological importance, wild edible mushrooms have been given little attention and are rarely documented in Ethiopia. In this study, we assessed mushroom production levels in natural and plantation forests and the influence of climate and environmental variables on mushroom production. Sporocarps were sampled weekly from July to August 2019 at a set of permanent plots (100 m) in both forest systems. We analyzed 63 plots to quantify sporocarp species' richness and fresh weight as well as to elucidate the degree of influence of forest types and site conditions, including soil and climate. Morphological analyses were used to identify fungi. In total, we recorded 64 wild edible fungal species belonging to 31 genera and 21 families from the plots established in the natural and plantation forests. A significantly greater total number of edible fungi were collected from natural forests (n = 40 species) than from plantations. Saprotrophs (92.19%) were the dominant guild whereas ectomycorrhizal fungi represented only 6.25% of species. Ecologically and economically important fungal species such as , , , , and were collected. The sporocarp yield obtained from plantation forests (2097.57 kg ha yr) was significantly greater than that obtained from natural forests (731.18 kg ha yr). The fungal community composition based on sporocarp production was mainly correlated with the organic matter, available phosphorus, and total nitrogen content of the soil, and with the daily minimum temperature during collection. Accordingly, improving edible species' richness and sporocarp production by maintaining ecosystem integrity represents a way of adding economic value to forests and maintaining biological diversity, while providing wood and non-wood forest products; we propose that this approach is imperative for managing Ethiopian forests.