WELLINGTON, June 18, 2025 (BSS/AFP) - New Zealand on Wednesday approved the medicinal use of psilocybin, a hallucinogenic compound notably found in so-called "magic mushrooms".

Deputy Prime Minister David Seymour said rules had been relaxed so psilocybin could be used to treat certain types of depression.

Psilocybin is a naturally occurring psychedelic compound found in some species of mushroom and can cause hallucinations and an altered state of mind.

"Psilocybin remains an unapproved medicine, but a highly experienced psychiatrist has been granted authority to prescribe it to patients with treatment-resistant depression," Seymour said.

"This is huge for people with depression who've tried everything else and are still suffering.

"If a doctor believes psilocybin can help, they should have the tools to try."

There will be tight rules for prescribing the drug.

Only psychiatrists who have been involved in psilocybin clinical trials will be allowed to prescribe it, and they must strictly report its use and keep detailed records.

Party drugs such as as MDMA and magic mushrooms are increasingly being used in mainstream medical settings, helping treat post-traumatic stress disorder and depression.

Australia approved the medicinal use of psilocybin in 2023.