lace lichen

In fact, the gray stringy thing which hangs from the tree is not a Halloween decoration; it is called Lace Lichen and grows where the climate is cool and humid and where there is little sun. Lace Lichen does not harm the trees; it is found on the branches that have already died from lack of sunlight. A lichen is combination of a fungus and a green alga. Deer like to eat this lichen, and birds carry it off for nesting materials.