Macrofungi are common and widespread in scrub jungles of southwest India during monsoon season. Assemblage of macrofungi in the vicinity of two tree species Anacardium occidentale (introduced) and Terminalia paniculata (native) were evaluated. Occurrence on different substrates (soil, leaf litter, wood, bark, seeds, live roots and insect) in and around trees was monitored at weekly intervals up to 12 weeks during southwest monsoon season based on the quadrat method. More number of macrofungi were associated with Terminalia compared to Anacardium (36 vs. 22 spp.) and 14 species were in common. The species richness ranged from 2-8, which was almost opposing between tree species on each week with a gradual decline. The sporocarp richness ranged from 3-61 in Anacardium, while it was from 8-132 in Terminalia with two peaks during week 4 and 7 followed by a steep decline. The species accumulation curve reached a plateau after four weeks in Anacardium, while it was exponential in Terminalia until 12 weeks. The Simpson and Shannon diversities were higher in Terminalia compared to Anacardium with low Pielou's equitability. In Anacardium, mushrooms were found on six substrates with a highest on soil as well as wood (9 spp.), while on seven substrates in Terminalia with a highest in soil (18 spp.). Anacardium was in association with one, while Terminalia with three ectomycorrhizal species. The pattern of distribution and diversity of macrofungi have been compared with earlier studies with different habitats of scrub jungles.