Although the well-known Upper Jurassic Morrison Formation has yielded abundant fossil plants for nearly a century, relatively little is known about fossil fungi and their ecological relationships to the Morrison flora. The first mention of fungal decay in fossil wood was briefly made over three decades ago, and since then, a few more reports of fungal decay associated with Morrison plants have been published. However, up to now, detailed data on the fossil fungi themselves have not been given from the Morrison Formation. Here we describe in detail well-preserved fossil mycelia in a silicified log of Xenoxylon utahense Xie et Gee, 2021 from the Upper Jurassic Morrison Formation at Miners Draw, Blue Mountain, near Vernal in northeastern Utah, USA. The fungal hyphae are variable in form, ranging from straight to slightly curved to highly coiled to tubular; they measure ∼1.53 µm in diameter and possess clamp connections, septa, and occasional bifurcations. The occurrence of clamp connections typical of living Basidiomycota indicates a taxonomic affinity to this division of fungi. On the basis of the patterns of wood decay in the Xenoxylon log, the fossil fungi are interpreted here as pertaining to saprotrophic, white-rot wood fungi. These fossil mycelia represent a new record of ancient Basidiomycota from the Upper Jurassic Morrison Formation and provide further evidence for plant–fungus interactions in Jurassic terrestrial ecosystems.