Is this a fungus?

[ChrisB]

Hi,  I've just been out in the garden mooching around, and spotted this growing beneath my eucalyptus tree.  Its quite tough and woody, but I was able to dislodge a bit to take a sideways photo of it.  Anyone know what it is and should I pull it out?

[Lvandelft]

Chris I think this is so called Icelandic Moss or Cetraria islandica.
It does not harm your plant because not a parasitic plant.
When you have enough of it you might dry it and make a tea against coughing.
It has a bitter taste! Should have that for a good medicine, shouldn't it 
It grows everywhere in Northern and Mid Europe. It grows here in Holland even on dunes.

[ChrisB]

Wow, thanks.  I wonder how it arrived?  We have never had it in the garden before.  Coughs eh?  I'll think about that one.  It looks a bit strange and must have grown whilst the cold weather has been here, don't remember it being there prior to that.