Fungi play an important role in carbon and nutrient cycling. It is, however, unclear if diversity of fungi is essential to fulfill this role. With this meta-analysis, we aim to understand the relationship between fungal diversity and decomposition of plant materials (leaf litter and wood) in terrestrial and aquatic environments. The selection criteria for papers were the presence of a fungal diversity gradient and quantification of decomposition as mass loss. In total 40 papers met the selection criteria. We hypothesized that increase of fungal species will result in stronger decomposition, especially in species poor communities. Both artificial inoculated and naturally assembled fungal communities were included in the analysis in order to assess whether manipulated experiments are representative for field situations. We found a significant positive effect of increased fungal diversity on decomposition. However, in manipulated experiments this relationship was only positive when a control treatment of one fungus was compared with multispecies communities. This relationship became negative when comparisons of higher initial richness (at least two fungal species as control) were included. In contrast, under natural field conditions increased fungal diversity coincided with increased decomposition. This suggests that manipulated experiments are not representative for field situations. Possible reasons for this are discussed. Yet, both in manipulated and field experiments, environmental factors can influence diversity decomposition relationships as indicated by a negative relationship of increasing C:N ratio on the effect of fungal diversity on decomposition. Overall, our results show that fungal diversity can have an important role in decomposition, but that design of experiments (manipulated or field) and quality of the plant material should be taken into account for interpretation of this diversity-functioning relationship.