This invention relates to the extraction of psychoactive compounds frompsilocybin fungusfor use in medicine. Raw psilocybin fungus is dried and ground. The solventused forextraction is a lower aliphatic alcohol, water, a hydro-alcohol mixture, anacidic hydro-alcoholmixture, or an alkaline hydro-alcohol mixture. The extraction slurry isfiltered andpH-adjusted if necessary. The solvent is then partially evaporated, orcompletelyevaporated with water added back, to form a concentrated slurry. Theconcentrated slurryis then standardized to provide a known concentration of the psychoactivealkaloids thathave been extracted. The standardized slurry may then be dried to result in apowderedpsilocybin mushroom extract with a precisely defined purity.