Cobweb disease symptoms were observed in a mushroom farm in Buye, Korea during a disease survey in 2008-2011. Five isolates of Cladobotryum sp. were obtained from the infected caps and stipes. These isolates of Cladobotryum sp. were identified as C. mycophilum based on their morphological, cultural characteristics and analysis of the ITS sequences. Early symptoms were noticed as round, fleshy, yellowish brown lesions on mushroom caps. Late symptoms progressed when the parasitic fungus formed white cobweb circular colonies on dead or damaged pinheads, spread on the surface of the casing, and covered entirely fruiting bodies. Optimal temperature and pH for mycelial growth on MEA is $23^{circ}C$ and 6.0. Microscopically the spores of the fungus are large and most 2~3 celled produced on vertically branched conidiophores. Mushroom caps turned dark brown and shrunk due to soft rot. Testing of sensitivity to selected fungicides showed that isolate was highly resistance to Mancozeb and Thiophanate-methyl, moderately sensitivity to Iprodione, and highly sensitivity to Benomyl, Prochloraz-Mn and Carbendazim.